Interest: amount of interest

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.

However, of much more importance for general arbitration principles is the question discussed by the learned judge of whether arbitrators can award interest under the generous provisions of the Late Payment of Commercial Debts (Interest) Act 1998 or whether awards are confined to the more restrictive rules set out in section 49 of the Arbitration Act 1996. There is an important discussion by Popplewell J of section 12 of the 1998 Act, which removes from the ambit of the Act contracts which, but for express choice of English law, would be governed by some other law.