Orin Energy Investments Ltd v The Owners of the Ship or Vessel MT Cavalier 2022 MLJU 673

Bills of lading: incorporation of charterparty arbitration clauses

Two issues are discussed in this note on a case from the Kuala Lumpur Admiralty Court. First, the law governing the incorporation of charterparty arbitration clauses into bills of lading – an issue that continues to bedevil the courts, despite the plethora of case law discussing the issue; secondly, how the right to arbitrate may be (unwittingly) lost by a party’s conduct. The conduct in question arises within the usual setting of maritime disputes, featuring the arrest of vessels, the provision of letters of undertaking and applications to stay court proceedings in favour of arbitration. Therefore, the lesson here is of general application although drawn from the specific facts of the case.