RS Shipping Bulletin - March 2011

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1 ARBITRATION . . . 3

1 . 1 THE FAILURE OF THE MAJORITY OF A TRIBUNAL TO SPECIFICALLY ADDRESS THE CONCERNS OF THE DISSENTING MEMBER WAS NOT A SERIOUS IRREGULARITY UNDER S.68 ARBITRATION ACT 1996 . . . . 3

2 CONTRACT . . . 4

2 . 1 COURT OF APPEAL CONSIDERS WHETHER A PARTY’ S INTENTION TO PERFORM IS RELEVANT TO THE ASSESSMENT OF LOSS . . . 4

2 . 2 COURT OF APPEAL FINDS THAT A CONTRACT WAS MADE WHEN A SIGNED QUOTATION WAS ACCEPTED, AND THAT THE PROVISION FOR A FURTHER FORMAL CONTRACT TO BE SIGNED DID NOT PREVENT THE CONCLUSION OF A CONTRACT AT THAT STAGE . . . 4

3 COSTS . . . 6

3 . 1 COURT OF APPEAL UPHOLDS A DECISION NOT TO MAKE AN ORDER AS TO COSTS DESPITE THE CLAIMANT’ S FAILURE TO OBTAIN A JUDGMENT MORE ADVANTAGEOUS THAN THE DEFENDANT’S PART 36 OFFER . . . 6

4 EU . . . 7

4 . 1 BIMCO ISSUES SPECIAL CIRCULAR ON EU ADVANCE CARGO DECLARATION CLAUSES . . . . 7

5 INSURANCE . . . 8

5 . 1 THE INABILITY OF A CARGO TO WITHSTAND THE ORDINARY PERILS OF THE SEA DOES NOT AUTOMATICALLY AMOUNT TO “INHERENT VICE” UNDER SECTION 55(2)(C) MARINE INSURANCE ACT 1906 . . . 8

5 . 2 COMMERCIAL COURT CONSIDERS A SHIPOWNER’S ENTITLEMENT TO RECOVER UNDER WAR RISKS INSURANCE FOLLOWING THE ARREST OF A VESSEL . . . 8

6 JURISDICTION . . . 10

6 . 1 HIGH COURT GRANTS AN INJUNCTION RESTRAINING A PARTY FROM PURSUING FOREIGN ARBITRATION PROCEEDINGS WHERE THE COURT HAD PREVIOUSLY HELD THAT NO ARBITRATION AGREEMENT EXISTED BETWEEN THE PARTIES . . . 10

6 . 2 HIGH COURT GRANTS SUMMARY JUDGMENT WHERE ENFORCEMENT OF THAT JUDGMENT WOULD BE ILLEGAL IN A FOREIGN JURISDICTION . . . 11

6 . 3 HIGH COURT HOLDS THAT A DISPUTE SHOULD BE ARBITRATED IN LONDON NOTWITHSTANDING THE RECOGNITION IN ENGLAND OF THE SWISS BANKRUPTCY OF ONE OF THE PARTIES . . . 11

7 PRACTICE AND PROCEDURE . . . 13

7 . 1 COURT OF APPEAL SETS ASIDE ORDERS EXTENDING THE TIME FOR SERVICE OF THE CLAIM FORM UNTIL AFTER THE EXPIRY OF THE LIMITATION PERIOD . . . 13

8 SALE OF GOODS . . . 14

8 . 1 COMMERCIAL COURT FINDS THAT A TRADER WAS ENTITLED TO INTERVENE IN A SALE OF GOODS CONTRACT AS AN UNDISCLOSED PRINCIPAL . . . 14

9 SHIPPING . . .15

9 . 1 HIGH COURT CONSIDERS AN ARBITRATION APPEAL DEALING WITH ISSUES OF DAMAGES AND SECURITY ARISING OUT THE UNAVAILABILITY OF CARGO DUE TO POLITICAL UNREST AT THE LOADPORT . . . 15

9 . 2 A PARTY IS FOUND NOT TO BE IN BREACH OF CONTRACT WHEN OVERHAULING A VESSEL’S ENGINES IN ACCORDANCE WITH COMMON INDUSTRY PRACTICE RATHER THAN IN ACCORDANCE WITH THE MANUFACTURER’S SERVICE MANUAL . . . 16

9 . 3 HIGH COURT ALLOWS THE VEIL OF INCORPORATION TO BE PIERCED WHERE CHARTERPARTIES HAD BEEN ENTERED INTO AS PART OF A SCHEME TO DIVERT CORPORATE OPPORTUNITIES . . . 17

9 . 4 HIGH COURT CONSIDERS THE CORRECT INTERPRETATION OF A 30 DAY TIME LIMIT FOR COMMENCING ARBITRATION IN A SHIPBUILDING CONTRACT . . . 17

9 . 5 HIGH COURT CONSIDERS THE MEANING OF THE PHRASE “WITHIN 12 MONTHS OF FINAL DISCHARGE OR TERMINATION OF THIS CHARTERPARTY” IN A MODIFIED CENTROCON ARBITRATION CLAUSE . . . 18

Please see full newsletter below for more information.

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Published In: Alternative Dispute Resolution (ADR) Updates, Civil Remedies Updates, General Business Updates, International Trade Updates, Transportation Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Reed Smith | Attorney Advertising

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