GLENCORE AGRICULTURE BV V CONQUEROR HOLDINGS LTD

[2017] EWHC 2893 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Popplewell, 16 November 2017

Arbitration - Jurisdiction of arbitrator - Service of proceedings on employee - Whether valid service - Attribution of knowledge - Express and ostensible authority - Arbitration Act 1996, sections 14, 16, 17, 72 and 76.

CH chartered the vessel Amity to GA to carry a cargo of corn from Ukraine to Egypt. The charterparty provided for arbitration under LMAA Rules, with each party to appoint an arbitrator in the event of a dispute. Delays occurred at the loading port, and in January and February three emails were sent by Mr Oosterman of GA from his GA email address to CH stating that the vessel would remain at anchorage. There was a delay of eight days, for which GA sought demurrage at the agreed daily rate. A claims adjuster acting for CH sent a letter before action to Mr Oosterman's email address, followed by a notice commencing arbitration and requiring GA to appoint an arbitrator. Mr Oosterman did not reply. In due course CH, exercising its power under section 17 of the Arbitration Act 1996, appointed its own arbitrator as the sole arbitrator. Communications were addressed to Mr Oosterman during the arbitral proceedings, but he did not respond. An award was issued in favour of CH, and that was sent to GA by post. That was the first that GA had heard of the proceedings, and it sought a declaration under section 72 of the 1996 Act that it had not been validly served with notice of the arbitration proceedings so that the appointment of the arbitrator as sole arbitrator was invalid.