“155. The short answer to this claim is that the Charterers cannot establish that they suffered any loss or damage by reason of any breach of contract. 156. The Charterers did not rely on the charterparty description of the moulded depth in fixing the vessel for sub-charter to Shams Marine. There is no reference to the moulded depth in the sub-fixture. Captain Prasad says in terms that he relied on the master to calculate the air draft; he does not say that he relied on the charterparty description. 157. Even if the Charterers could mount the hurdle and prove causation, which they cannot, the Charterers have clearly failed to mitigate their loss and/or acted unreasonably by sub-chartering the vessel in circumstances where the master had been giving information to the Charterers indicating that the vessel could not load the cargo at Misurata. 158. Further the Charterers waived any breach by reason of their being in possession or information concerning the real moulded depth in December 2004 and/or having received air draft calculations from the master in February 2005 which demonstrated that the vessel would not be able to load at Misurata. 159. Accordingly, the claim for damages for breach of charterparty description of the moulded depth should be dismissed.”
“We add, by way of introduction, that [the HBI and DRI disputes] involved substantially greater sums than the remainder and we heard oral evidence relating to them in London in July 2008. The remaining disputes were addressed by way of written submissions, running in total to some 200 pages. This was clearly a case where the matter of principle between the parties was as or more important than the sums at stake. For us to address every point made by counsel, whose thoroughness and painstaking attention to detail was to be admired, would we feel be disproportionate. We trust we will be forgiven for not reciting every point made, although we have, we hope, taken them all on board.”
“Our conclusion that there was a binding agreement which Owners had reneged on, lead us to an inquiry as to what damages Charterers might recover. Mr Mazman said, and we accept, that he offered the vessel to Sham’s on 25th February (and indeed fixed Hilal I or sub on 1st March for this quantity) to load a basic 20,000mt cargo and would have been able to secure a ‘top up’ 10,000mt for Indian buyers which would have made the voyage hugely profitable, essentially because the 10,000mt went more or less straight to the bottom line. In the event he was obliged to insert a smaller vessel to lift his basic commitment of 20,000mt and thereby lost that bonus. However, the story does not stop or indeed start there: the vessel could not have loaded any cargo at Misurata. It could not meet the air draft restriction, even juggling with ballast or part loading some holds and completing them later. It transpired that the main reason for this was that the vessel’s moulded depth was 16.1 metres and not the 14.05 meters as appears in the charterparty description. This caused us some difficulty. Was it open to Charterers to base their claim for damages for reneging on the agreement to load HBI on a voyage that the vessel could not physically perform? After some considerable debate, between the members of the tribunal, we concluded that the two breaches, namely refusal to perform the voyage plus the misdescription rendering performance physically impossible, when combined, entitled the Charterers to damages based upon the difference between the notional voyage the vessel should have performed and what business she did instead…”
“In this case, the inability to load, and for that matter any related lack of safety of port and/or berth at Misurata or Point Lisas, were a quite obvious result of the Vessel not being as warranted in Clause 53. However Owners try to dress it up, the simple fact remains: a. had she been as warranted, then she could have been loaded (and safely loaded), and so Charterers could have performed the lucrative sub-fixtures (and so Owners would have no defence to the claim for reneging on the relevant oral agreements) b. however, she was not as warranted and so – as a direct result - loading was impossible (and hence unsafe), and so Charterers could not have performed the lucrative sub-fixtures. Hence, the conclusion that “the two breaches, namely refusal to perform the voyage plus the misdescription rendering performance physically impossible, when combined, entitled the Charterers to damages based upon the difference between the notional voyage the vessel should have performed and what business she did instead…”
“.. where the decision cannot be justified as a particular key issue has not been decided which is crucial to the result .... the tribunal has not done what it was asked to do, namely to give the parties a decision on all issues necessary to resolve the dispute or disputes..”
“Nor is it incumbent on arbitrators to deal with every argument on every point raised. But an Award should deal, however, concisely, with all essential issues.”
“(1) The following provisions apply to an application or appeal under section 67, 68 or 69. (2) An application or appeal may not be brought if the applicant or appellant has not first exhausted (a) any available arbitral process of appeal or review, and (b) any available recourse under section 57 (correction of award or additional award).” (a) any available arbitral process of appeal or review, and (b) any available recourse under section 57 (correction of award or additional award).”
“(1) The parties are free to agree on the powers of the tribunal to correct an award or make an additional award. (2) If or to the extent there is no such agreement, the following provisions apply. (3) The tribunal may on its own initiative or on the application of a party - (a) correct an award so as to remove any clerical mistake or error arising from an accidental slip or omission or clarify or remove any ambiguity in the award, or ……. These powers shall not be exercised without first affording the other parties a reasonable opportunity to make representations to the tribunal. (4) Any application for the exercise of those powers must be made within 28 days of the date of the award or such longer period as the parties may agree. …”
“25. (a) In addition to the powers set out in Section 57 of the Act, the tribunal shall have the following powers to correct an award or to make an additional award: (i) The tribunal may on its own initiative or on the application of a party correct any accidental mistake, omission or error of calculation in its award. (ii) The tribunal may on the application of a party give an interpretation of a specific point or part of the award. (b) An application for the exercise of the powers set out above and in Section 57 of the Act must be made within 28 days of the award unless the tribunal shall think fit to extend the time. (c) The powers set out above shall not be exercised without first affording the other parties a reasonable opportunity to make representations to the tribunal. (d) Any correction or interpretation of an award may be effected in writing on the original award or in a separate memorandum which shall become part of the award. It shall be effected within 90 days of the date of the original award unless all parties shall agree a longer period.” (a) In addition to the powers set out in Section 57 of the Act, the tribunal shall have the following powers to correct an award or to make an additional award: (i) The tribunal may on its own initiative or on the application of a party correct any accidental mistake, omission or error of calculation in its award. (ii) The tribunal may on the application of a party give an interpretation of a specific point or part of the award. (b) An application for the exercise of the powers set out above and in Section 57 of the Act must be made within 28 days of the award unless the tribunal shall think fit to extend the time. (c) The powers set out above shall not be exercised without first affording the other parties a reasonable opportunity to make representations to the tribunal. (d) Any correction or interpretation of an award may be effected in writing on the original award or in a separate memorandum which shall become part of the award. It shall be effected within 90 days of the date of the original award unless all parties shall agree a longer period.”
“28. If however Torch had reverted to him, applying for clarification as to whether he had decided against it on inducement by the second representation, it would have been clear in this court whether or not he had determined the issue. It seems to me that s. 57(3)(a) can be used to request further reasons from the arbitrator or reasons where none exist. The policy which underlies the Act is one of enabling the arbitral process to correct itself where possible, without the intervention of the Court. Torch contended that it was clear that the arbitrator had not decided the issue and that therefore: there was no ambiguity in the award which required clarification, but the very existence of a genuine dispute on this question militates against that argument. If there was unarguably a clear failure to deal with an issue, it could be said that there was no ambiguity in the award, but as set out in AI Hadha at par. 70, an award which contains inadequate rationale or incomplete reasons for a decision is likely to be ambiguous or need clarification. There was therefore room for an application by Torch under s. 57, as an exchange of letters with the owners in relation to this part of the Award would have revealed, so that the time limit of 28 days (for which s. 57(4) provides) applied. In these circumstances Torch had available recourse under s. 57, which had not been exhausted and s. 70(2) therefore presents an insurmountable bar to Torch’s s. 68 application. …”
“The test of ‘substantial injustice’ is intended to be applied by way of support of the arbitral process, not by way of interference with that process. Thus it is only in those cases where it can be said that what has happened is so far removed from what could reasonably be expected of the arbitral process that we would expect the court to take action. The test is not what would have happened had the matter been litigated. To apply such a test would be to ignore the fact that the parties have agreed to arbitrate, not litigate. Having chosen arbitration, the parties cannot validly complain of substantial injustice unless what has happened simply cannot on any view be defended as an acceptable consequence of that choice. In short, clause 68 [now section 68] is really designed as a longstop, only available in extreme cases where the tribunal has gone so wrong in its conduct of the arbitration that justice calls out for it to be corrected.”
“Any application or appeal must be brought within 28 days of the date of the Award...”
“The court has power to vary the period of 28 days fixed by section 70(3) of the 1996 Act: rule 62.9(1). However, it is important that any challenge to an award be pursued without delay and the court will require cogent reasons for extending time.” “The court has power to vary the period of 28 days fixed by section 70(3) of the 1996 Act: rule 62.9(1). However, it is important that any challenge to an award be pursued without delay and the court will require cogent reasons for extending time.”
“..even if we do agree .. to split the costs – the next point is WHEN to make payment. We discussed the situation with appealing an award. A party is only allowed 28 days from the date of publication it’s not the date when they pick up the award. That means that if an award is not collected within the 28 days it automatically becomes unappealable. It’s always a tough call to make. However, you have seen how this man deals with files. The chances are that he will appeal anything he absolutely can – and waste yet more time and money. Practically speaking, this arbitration dealt mainly with points of fact. While there is always a legal debate on how important a principle might be – we really don’t think it is worth keeping this matter alive any further if we can help it.” (d). On25th March 2009 , the Tribunal chairman spoke to both EM and ML and it was agreed, but always expressly subject to clients’ instructions, that each party would pay 100% of the fees of its appointed arbitrator and 50% of the chairman’s fees. That provisional agreement said nothing about the timing of any payment of the Tribunal’s fees. It was solely concerned, as EM made clear in their email to one of the arbitrators dated27th March 2009 , with overcoming the problems caused by the Owners’ concerns as to the level of fees charged by one of the arbitrators. (e). On26th March 2009 , the Arbitral Tribunal made its two Awards and notified the parties that they were published and would be released on payment of the Tribunal’s fees. On the same day, EM informed the Tribunal that they had asked the Owners to put them in funds in order to pay the Owners’ appointed arbitrator in full and 50% of the chairman’s fees, and stated that they would notify the Tribunal when those funds had been received. (f). Nothing thereafter crossed the line either between the parties and their respective legal advisers, or between either of the parties and any member of the Arbitral Tribunal, until27th April 2009 : four days after the 28 day time limit for the making of any section 68 and/or 69 application had expired (23rd April 2009 ). On 27th April, the Tribunal chairman sent a polite chaser in respect of the Tribunal’s fees and stated, as was the fact, that there was still no indication from the Charterers on what their position was towards payment of the Tribunal’s fees. The chairman also asked EM to confirm that they were in funds from the Owners. EM responded on 28th April to inform the Tribunal that they had been advised that day that the Owners expected to be able to put EM in funds for that part of the Tribunal’s fees that the Owners were prepared to pay by15th May 2009 . It is apparent, as Mr. Jones pointed out, that it was only the chairman’s communication that had prompted EM to take any steps to find out from their clients what the position was in relation to the advancement of funds. On the same day, ML also responded to the chairman’s communication to say that they had overlooked the matter and hoped to be able to revert very shortly. On29th April 2009 , ML reverted to say that they had in fact overlooked their clients’ reply and that they were already in funds to pay 50% of the chairman’s fees. They asked their clients’ appointed arbitrator whether he wished to be paid by the Charterers direct or via ML. The Charterers paid their appointed arbitrator 100% of his fees on 4th May and paid the chairman 50% of his fees on 6th May. Also on 6th May, EM notified the Tribunal that the Owners had put them in funds. On 7th May, EM on behalf of the Owners paid the outstanding balance of the Tribunal’s fees. The Awards were released by post and email later that day,7th May 2009 . (g). One week later, on14th May 2009 , EM sent an email giving the first indication that the Owners were considering an appeal. ML immediately objected, pointing out, correctly, that the time limit had expired “quite some time ago”
“It could well be that [Mr. Miles of EM] advised his own clients, the Owners, in similar terms to ourselves. He may have taken a risk ... that the Award would be favourable to his clients. Now that the Award has gone against him – he now wishes to overcome the issue of finality.”
“This means that when the arbitrator notifies the parties that the award is ready for collection on payment of his fees they have to decide whether to pay the arbitrator’s fees and to take up the award. This is a tactical decision: by waiting more than 28 days before taking up the award a claimant (or respondent) may obtain an award in its favour against which a challenge is out of time; however, it also risks losing its own right of challenge. The courts have regarded a failure by a party to take up an award within the time limit as a conscious decision to confer additional finality on the award and to lose the right to challenge the award in court.”
“…Different legal systems strike a different balance between the Courts and the arbitral tribunals. Some allow appeals on questions of law; some allow no appeals whatsoever. Some allow Courts to review the conduct of the arbitrations and some do not except on very restricted grounds. In England we have a relatively liberal system which allows appeals on questions of law within carefully controlled limits and we entertain a range of grounds for saying that arbitrators have misconducted themselves including what we describe as technical misconduct or procedural mishap. But all this was to be viewed against the fundamental principle that the parties have chosen their tribunal, that is to say, the arbitral tribunal, and have agreed to be bound by the decision of that tribunal. They have agreed that the award is to be final, subject always to any question of jurisdiction. Courts will only interfere with the decision of arbitrators within very carefully controlled limits. One of those limits is the time within which the matter may be brought before the Court. If it is not brought before the Court within the 21 days then an award made with jurisdiction becomes effectively final for all purposes. This applies both ways, it applies to both parties. So, following the publication of an award, each party has to make up its mind whether it wishes to take up the award within 21 days. In making that choice they no doubt have regard to both their own position and that of the opposite party. It must be always borne in mind that the purpose of an application to the Court is that the party so applying may obtain at the end of the exercise a different award from that which has originally been made by the arbitrators. Here it is the charterers that are trying to get the award altered but it could equally well have been the owners. The parties when they exercised their choice not to take up the award within 21 days were achieving that additional finality for both parties. It is not open to a party to argue, as have the charterers here, that they were waiting for the other party to take up the award; that they did not know that there was any point they wanted to raise on the award. They have to take that decision for themselves. The position is, in a sense, a stark one: a party who wishes to reserve his right to take the matter to the Court either by way of appeal or under s. 22 of the 1950 Act must ensure that the award is taken up in time to enable the application to be made. The present case is a clear example where, despite the small sum of costs involved, that is to say, some£6000 , each party preferred not to take up the award in 21 days or indeed at all until about 12 months had elapsed. There are cases where within the spirit of the 21 day rule a party has done its best to comply with that timetable though in some way it has reasonably but unintentionally allowed the time limit to expire. The Court has a discretion to extend time and can do so wherever in the interests of justice it is appropriate to do so. The power is clearly stated in O. 3, r. 5. It enables the Court to do justice in that way and in appropriate cases the Court will extend the time. But I consider, and I consider it must be clearly stated, that where parties voluntarily allow the time limit to expire, not marginally but by a very substantial factor, a party should not be allowed later, save in exceptional circumstances, to challenge the finality of the award. The parties have by their agreement to arbitrate agreed that the award should be final; they have agreed to be bound by the award and they have agreed to pay the award. It is true that this agreement is subject to the powers of the Court in relation to arbitration agreements and the conduct of arbitrations. But the powers of the Court should only be exercised taking into account what is the agreement of the parties. The fundamental agreement of the parties is the same as the policy of the law, that is, that an award made with jurisdiction should be final. The charterers' application for an extension of time in the present matter is therefore fundamentally flawed. It overlooks the basic principle of finality and should not be entertained. There are no exceptional circumstances in this case except the enormity of the lapse of time that has occurred and the total inadequacy of the reasons that are given for it…”