Sino Channel Asia Ltd v Dana Shipping and Trading Pte Singapore and another – WLR Daily

Posted June 8th, 2016 in arbitration, contracts, jurisdiction, law reports, service, third parties by sally

Sino Channel Asia Ltd v Dana Shipping and Trading Pte Singapore and another [2016] EWHC 1118 (Comm)

‘The charterer engaged a third party company to arrange contracts which would be concluded in the charterer’s name but performed by the third party. Through the third party, the charterer entered into a contract of affreightment with the owner. The principal contact point between the owner and the charterer was a junior employee at the third party company. When a dispute arose the owner appointed an arbitrator and e-mailed their notice of arbitration to the third party’s employee, calling on the charterer to appoint their arbitrator. The charterer having not responded, the owner’s arbitrator, in accordance with the terms of the contract, proceeded as the sole arbitrator and made an award in favour of the owner. The charterer applied, pursuant to section 72(1)(b)(c) of the Arbitration Act 1996, for a declaration that the award had been made without jurisdiction, on the ground that the third party’s employee had not had authority to accept service of notice of commencement of arbitration proceedings on the charterer’s behalf and that service on him had not been in accordance with section 76 of the 1996 Act. The owner contended that the employee had had actual implied authority and/or ostensible authority to receive notice of arbitration on the charterer’s behalf.’

WLR Daily, 20th May 2016