Arbitration Law Monthly

The Contracts (Rights of Third Parties) Act 1999 abolished the doctrine of privity of contract and (subject to contrary agreement) allows a benefit to be conferred upon a non-contracting party. How is that benefit to be given effect if the contract itself contains an arbitration clause?

The main issue in Bulk Ship Union SA v Clipper Bulk Shipping Ltd (The Pearl C) [2012] EWHC 2595 (Comm) was an appeal on a point of law under section 69 of the Arbitration Act 1996 on the proper construction of a charterparty. That matter is outside the scope of this note and it suffices here to say that Popplewell J found that the arbitrators had not erred in holding that the charterers were liable for delays.

Section 70(3) of the Arbitration Act 1996 lays down a strict time limit of 28 days from the publication of the award within which any appeal, or application for permission to appeal, against the award has to be made. The court has a discretion to extend time under s 80(5), but there is no statutory guidance on how this is to be exercised and the principles have been laid down by the courts.

Latvian Shipping Co v Russian People’s Insurance Company (ROSNO) Open Ended Joint Stock Company (The Ojars Vacietis [2012] 2 Lloyd’s Rep 181 was a case in which arbitrators dismissed a claim for damage to the propeller of a vessel on the ground that the assured had not proved that the damage as a whole had occurred at a time when the vessel was insured, even though there was a possibility that a part of the damage had occurred at that time.