Five Oceans Salvage Ltd v Wenzhou Timber Group Co (The “Medea K”) – QBD (Com Ct)(Field J) – 23 November 2011

Arbitration – Jurisdiction – Serious irregularity – Salvage arbitrator making award against respondent cargo owners – Cargo owners contending they had not authorised representatives to act for them in the arbitration – Whether arbitrator retained jurisdiction to remedy alleged breach of natural justice – Whether innocent failure by arbitrator to give cargo owners opportunity of putting their case constituted serious irregularity – Arbitration Act 1996, sections 32 and 68

The claimant contractors provided salvage services to the vessel Medea K after she developed a serious list at anchor off Gabon in October 2009. The salvage was carried out on the terms of the Lloyd’s Standard Salvage Agreement ( “LSSA”) made between the claimant and the owners of Medea K on behalf of the vessel, her cargo, freight, bunkers and stores. The defendant (“WTG”) owned most of the cargo of logs onboard the vessel.