London Arbitration 7/23

In the arbitration reported last week, Owners had alleged several breaches by Time Charterers and claimed USD160,000 resulting damages for a ‘lost fixture’, plus an alleged crew – war risk area – bonus.  The Tribunal had dismissed the latter and awarded damages only on the basis and in the (substantially smaller) amount admitted (and part-paid) by Charterers. Owners as ‘successful’ party sought 100% of their costs. The Tribunal took into account that Owners had failed to support claims promptly or at all; that Charterers correctly foresaw the outcome and made a WP offer accordingly, which indicated goodwill, although they failed to include interest or any costs.  The Tribunal ruled that Charterers bear their own costs and just 40% of Owners’ recoverable costs, from which the Tribunal excluded pre-action costs of general investigation not reflected in the arbitration claim.