London Arbitration 4/08

Sale of ship – Deposit – Vessel sold to X for a company to be nominated whose performance was to be guaranteed by X – Deposit paid by X – Parties subsequently entering into Addendum whereby X nominated Y as buyers – Purchase price not paid in time – Sellers cancelling sale and seeking to forfeit deposit – Y failing to comply with arbitration award that it should release deposit – Sellers bringing arbitration proceedings against X as guarantor – Whether tribunal had jurisdiction – Whether X was party to sale agreement – Whether sale agreement novated by Addendum – Whether tribunal bound by previous award

(2008) 735 LMLN 3(2)