Extension of time limits

Arbitration proceedings are subject to the Limitation Act 1980, and must be commenced within the relevant statutory limitation period (generally six years from the date of breach of contract). In addition, the parties may agree contractual time limits which reduce the available period. Section 12 of the Arbitration Act 1996 permits the court to extend contractual, but not statutory, time limits. Lantic Sugar Ltd v Baffin Investments Ltd [2009] EWHC 3325 (Comm) is an illustration of the limited nature of the court’s power.

Lantic: the facts

By a bill of lading dated 19 November 2007 and issued in Brazil, Baffin, the owner of the vessel Lake Michigan, acknowledged receipt of a cargo of raw cane sugar for carriage to Canada. The vessel had been chartered to FIL, a company in the same group (Fednav) as Baffin. The shipper was Copersucar, which had taken a subcharter of the vessel from FIL, and Lantic was named as consignee. The bill of lading provided for arbitration in London, and also incorporated the Hague-Visby Rules with their standard 12-month time limit for the commencement of proceedings running from the date of discharge. Discharge was completed on 22 December 2007, and it was alleged by Copersucar and Lantic, the claimants, that a significant quantity of the sugar had become damaged by rain.