PETROLEUM COMPANY OF TRINIDAD AND TOBAGO LTD V SAMSUNG ENGINEERING TRINIDAD CO LTD

[2017] EWHC 3055, Queen's Bench Division, Technology and Construction Court, Mr Justice Coulson, 30 November 2017

Arbitration - Challenge to award on jurisdictional grounds - Meaning of "substantive jurisdiction" - Arbitration Act 1996, sections 30 and 67

On 15 December 2006 Petrotrin entered into three agreements relating to the procurement, production and commissioning of a complex and substation at its refinery in Trinidad. The agreements were: an Onshore Agreement between Petrotrin and Samsung; an Offshore Agreement between Petrotrin and an associated Samsung company, SECL; and a Linkage Agreement between all three parties. The Onshore and Offshore Agreements contained liquidated damages clauses limiting sums payable by Samsung to 10 per cent of the contract price. Each of the agreements provided for ICC arbitration. A claim was brought in arbitration by Petrotrin under the Onshore Agreement. The tribunal gave a partial award holding that reference was limited to the Onshore Agreement and so the cap on liquidated damages was 10 per cent of the value of that contract and not 10 per cent of the value of both the Onshore and Offshore Agreements. Petrotrin appealed under section 67 of the Arbitration Act 1996 on the ground that the tribunal had jurisdiction over the Offshore and Linking Agreements as well and that the higher cap was applicable.