BRIGGS MARINE CONTRACTORS LTD AGAINST BAKKAFROST SCOTLAND LTD [2023] ScotCS CSOH_6 (02 February 2023)

BRIGGS MARINE CONTRACTORS LTD AGAINST BAKKAFROST SCOTLAND LTD [2023] ScotCS CSOH_6 (02 February 2023)

The dispute regarding payment under the alleged oral agreement is sufficiently connected with the WFC, both factually and causally, such that it falls within the scope of the WFC's arbitration clause, which is to be construed broadly under English law. Therefore, the court must sist the action for arbitration.

Citation
[2023] ScotCS CSOH_6
Parties
Pursuer: Briggs Marine Contractors Limited; Defender: Bakkafrost Scotland Limited
Jurisdiction
Scotland
Judgment Date
02 February 2023
Procedural Posture
Commercial Contract Dispute / Preliminary Plea on Jurisdiction (arbitration Clause)
Outcome
Cause sisted for arbitration
Legal Topics
Arbitration Clauses, Jurisdiction, Contract Frustration, Oral Agreements, Variation of Contract
Contract Law Arbitration Arbitration Clauses Jurisdiction Contract Frustration Oral Agreements Variation of Contract

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Parties

Briggs Marine Contractors Limited

Pursuer

Bakkafrost Scotland Limited

Defender

Procedural Posture

Commercial Contract Dispute / Preliminary Plea on Jurisdiction (arbitration Clause)

Legal Issues

  1. 1 Whether the dispute arises out of or is in connection with the Wreck Fixed Contract (WFC) and thus subject to the arbitration clause
  2. 2 Whether an alleged oral agreement constitutes a separate contract or a variation of the WFC
  3. 3 Whether the WFC was frustrated

Ratio Decidendi

The dispute regarding payment under the alleged oral agreement is sufficiently connected with the WFC, both factually and causally, such that it falls within the scope of the WFC's arbitration clause, which is to be construed broadly under English law. Therefore, the court must sist the action for arbitration.

Court Disposition

Cause sisted for arbitration

Orders

  • Sustain defender's first plea-in-law
  • Sist the cause for arbitration for three months, with a by-order hearing to monitor progress