Singapore Arbitration 1/19

Carriage of goods by sea – Freight – Fraudulent broker inducing innocent shipowner and an innocent third party to conclude head and sub-charters respectively – Bill of lading incorporating “charterparty” terms including arbitration clause – Sub-charterer paying full freight to bank specified by fraudster – Fraudster paying part over to shipowner and retaining balance – Shipowner bringing arbitration proceedings against sub-charterer claiming balance of freight – Whether sub-charterers liableArbitration – Jurisdiction – Charterparty providing for arbitration in Singapore with English law to apply – Whether English procedural law applied to arbitration – Whether sole arbitrator validly appointed by shipowner under English Arbitration Act 1996 – Whether sub-charterer waived objection to jurisdiction

Bya charterparty dated 9 November 2010 the claimant owners fixed the subject vessel to X Co, a bona fide company in China. The fixture was negotiated through a Mr A who purported to be acting on behalf of X Co but who, it subsequently turned out, had no connection with them.