Case Summaries
Tonicstar Limited v (1) Allianz Insurance PLC; (2) Sirius International Insurance Corporation (PUBL) (London Branch) [2017]
“An arbitration clause requiring the tribunal to "consist of persons with not less than ten years' experience of insurance and reinsurance" requires first-hand experience in the trade or business of insurance and reinsurance; legal experience alone will not suffice. A Queen's Counsel with over ten years of experience in insurance and reinsurance law was removed by the Commercial Court on the grounds that he was not qualified to act as an arbitrator in that particular arbitration reference, and the respondents were given 30 days within which to appoint a new arbitrator. “
Sino Channel Asia Ltd. -v- Dana Shipping & Trading PTE Singapore [2017]
“In this most unusual case, service of a notice of arbitration on a party's agent was deemed valid, the agent having implied and ostensible authority to accept such service, because the principal took "no part, no role and no interest in the negotiation or performance" of the contract.”
Arbitration 28/17 (2017) 989 LMLN 2
“Owners settled a cargo claim in respect of shortage, wet and other damage to bagged rice and claimed a full indemnity from Time Charterers on the basis that the bills, incorporating a sub-charter, had exposed them to more onerous terms than the t/c. The Tribunal declined to hold that the material terms of the bills had exposed Owners to this cargo claim and instead applied the Interclub Agreement 50% apportionments with each party bearing its own costs of the reference.”
CSSA Chartering and Shipping Services SA v Mitsui O.S.K Lines Ltd (the "Pacific Voyager" [2017]
“Dealing with an unexplored corner last week the Commercial Court ruled that the Owners' obligation to proceed with "utmost despatch" or "use all convenient speed" will extend to cases where there is no provision as to ERTL or ETA, but merely a cancelling date. The laycan will still indicate the period of time within which the approach voyage should commence so that the Vessel arrives at the loading port by the cancelling date.”
Pan-United Shipping Pte Ltd v Cummins Sales and Service Singapore Ltd — High Court (Chan Seng Onn J) [2017]
“A shiprepairer's standard terms (referred to in its quotation for engine overhaul) prevailed over the terms of its tug-owner customer (referred to in the latter's purchase order, issued after its verbal go-ahead). Nevertheless, the shiprepairer's clause excluding liability for consequential loss (and limiting recovery to the value of work) neither precluded nor limited the direct losses claimed as a result of damage sustained during testing, namely engine repair, substitute tonnage and loss of use.”
DSA Consultancy (FZC) v Owner and/or Demise Charterer of the Vessel "Eurohope" — High Court (Chua Lee Ming J) — 31 August 2017
“The High Court recently clarified that under Singaporean law vessel arrest for the purpose of retaining security in support of foreign proceedings is not available. Charterers pursuing litigation in England were ordered to return the security obtained as the arrest was declared an abuse of process. The Owners' damages claim for wrongful arrest was dismissed as the Charterers' behaviour did not amount to bad faith or malice, nevertheless, Charterers were ordered to pay the costs of the appeal proceedings. This is a significant difference from the position in England where courts have the power to order the arrest of property in assistance to foreign proceedings.”