Japan Lines Ltd. v. Himoff Maritime Enterprises Ltd. (The Kehrea) - Q.B.D. (Com. Ct.) (Mustill J.) - 4 August 1982

Arbitration - Whether arbitration agreement frustrated by delay

The charterers of the vessel Kehrea applied to restrain the further conduct of an arbitration brought by the vessel’s owners on the ground that excessive delay in the conduct of the arbitration had brought the arbitration agreement to an end. Arbitrators were initially appointed in June 1974, but it was not until June 1975 that the owners delivered their points of claim. The pleadings exchanged in the arbitration raised three groups of issues, namely: (a) whether the owners had made representations in respect of the estimated time of the vessel’s arrival at the loading port, (b) whether there was a representation or an express or implied term in the charterparty to the effect that the vessel had sufficient bunkers onboard to complete the voyage, and whether the charterparty should be rectified, and (c) whether a particular clause in the charterparty made the charterers liable to pay for bunkers taken on-board at the intermediate port at the price which the owners’ had paid, or whether the price of the bunkers was fixed by another charterparty clause.