pi_circular Insurance & claimsCargo risk UK P&I Club
QCR Autumn 2018: Contractually agreed time bars in a charterparty chain will be strictly enforced P V Q; Q V R; R V S [2018] EWHC 1399 (Comm) Facts This case concerned a chain of back-to-back voyage charters on the Norgrain 1973 form, for the carriage of a cargo of dried grain solubles on the vessel Capetan Giorgis. The chain was as follows: Sinochart voyage-chartered the vessel to P; P sub-chartered to Q; Q sub-chartered to R; and R sub-chartered to S. Clause 67 of each charterparty provided that any claims " must be notified in writing to the other party and claimant's arbitrator appointed within thirteen (13) months of the final discharge of the cargo and where this provision is not complied with, the claim shall be deemed to be waived and absolutely barred ." The time line was as follows: 16 October 2015 - Cargo discharge completed 9 September 2016 - Bill of lading holder commences proceedings in Xiamen Maritime Court against Head Owners 16 November 2016 - CONTRACTUAL TIME BAR 16 November 2016 - Sinochart is notified of a claim. At 1844 hours, after P's office closed, Sinochart sends claim notification to P and commences arbitration 17 November 2016 - After the time bar passed, P becomes aware of claim and informs but fails to commence arbitration. P's operations department did not notify its legal department until 23 November and no arbitration against Q was commenced until 25 November 17 November 2016 - Q informs R of claim and commences arbitration against R by a notice sent to R's broker. R became aware of Q's notice via the broker on 18 November but contested that its broker did not have authority to accept service of an arbitration notice. R did not instruct lawyers until 28 November and appointed an arbitrator on 29 November 30 November 2016 - To protect its position Q serves fresh notice on R without prejudice to its 17 November notice 1 December 2016 - R informs S of claim and serves notice of arbitration The notifications and commencements of arb
QCR Autumn 2018: Contractually agreed time bars in a charterparty chain will be strictly enforced
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