LORAND SHIPPING LTD V DAVOF TRADING (AFRICA) BV (THE MV "OCEAN GLORY")

[2014] EWHC 3521 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Eder, 30 October 2014

Arbitration - Application for partial award and reservation of jurisdiction for potential future claims - Arbitrators issuing final award refusing to continue the arbitration - Serious irregularity - Substantial injustice - Arbitration Act 1996, sections 47 and 68

Disputes arose between the parties to a voyage charterparty which provided for the shipment of animal feed from the Ivory Coast to Morocco. The contract was governed by English law, disputes to be determined by arbitration in London. There was a time bar clause under which any claims had to be lodged within six months of the last day of discharge. The vessel lost her rudder on 7 June 2013, and she was towed to Morocco but discharging operations were significantly delayed. Immediately following discharge, the owners gave notice of their appointment of an arbitrator and requested the charterers to do the same, although no particular dispute or claim was specified. The charterers appointed an arbitrator. The owners applied for a partial award for demurrage in the sum of US$86,437.50 and sought to reserve the jurisdiction of the tribunal for any and all claims by the owners in respect of cargo damage claims which might be brought against them by the receivers of the cargo. The tribunal published a final award which awarded demurrage. As regards the other potential claims the tribunal held that its jurisdiction would not be reserved, given the length of time since the cargo had been discharged and the absence of any evidence that there would be claims against the owners. The effect of the award was to exhaust the jurisdiction of the tribunal. The owners sought to have the award remitted to the tribunal on the basis of serious irregularity under section 68 of the Arbitration Act 1996.