- Legal Articles
- Ask Elhais
April 19, 2016|
Even if a Bill of Lading does not expressly contain an arbitration clause it might refer disputes to arbitration through the charterparty which may include an arbitration clause. The reference to arbitration shall be clear and unambiguous.
If arbitration clause so contained covers and may be used to settle the dispute in question it shall be interpreted that it was the parties' intent to refer such disputes to arbitration.
The claimant in the said case is an insurance company. The owner of goods to be transported had entered into a contract with the shipowner to transport the said goods from Saudi Arabia to UAE. However, during the transit the goods was subjected to pollution and the pollution changes the character of the goods. The claimant in the case was covering the goods owner as insurer and was found liable to cover the damage suffered by the goods owner which was estimated by expert evaluators to be over AED 8.6 million. This was paid by the claimant to the material owner.
The claimant filed a civil case under Article 398 of the Maritime Laws of UAE requesting the court to enforce the defendant to pay the claimant an amount of 2.4 million USD and interest.
The Respondent filed a counter claim that an arbitration clause was contained in the contract and requested the court to dismiss the case and to refer the dispute to arbitration. The Court of First Instance however accepted the case and dismissed the respondent's claim.
The respondent appealed the Court of First Instance's judgment to overturn the judgment and dismiss the case. The Court of Appeal accepted the respondent's argument and dismissed the case due to lack of jurisdiction.
The claimant then brought the issue to the court of Cassation and argued that the Court of Appeal's decision be reversed. It was submitted that the Bill of Lading did not contain clear wording which establishes or expresses the conclusive will of the parties involved to refer disputes to arbitration. The claimant argued that the bill of lading is a template which only contains the details of vessel with ready-made conditions which did not include a clause for arbitration. This point of view was confirmed was confirmed by the Court of First Instance by ruling that the court shall not assume arbitration if it isn't clearly mentioned and expressed by parties.
Court of Cassation judgment
The Court of Cassation disagreed with the claimants arguments and ruled that the Bill of Lading was expressly referring to an arbitration clause through the charter party. The court also observed that such a reference was not a general reference to all clauses but the arbitration clause specifically. Therefore since the court was satisfied that the said arbitration clause covers the dispute such disputes shall need to be referred to arbitration thereby dismissing the claimant's case.
Copyright © of this article is retained by the author and/or other copyright owners. We explicitly grant you permission to download a copy, without any alteration, of this article for personal non-commercial research or study, without prior permission or any charge. This article can be utilized on your website or for marketing, however, we grant you permission to host this article on your website and no other rights. This content should not be altered in any way or sold commercially in any format without prior permission of the copyright holder. During reference of this article, full biographic details entailing the name of the author, his designation, the institute and the publishing date of the article shall be provided.
I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.
Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.
...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...
I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.
Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.
He aided us not only in providing legal advice but also in all legal issues that required a long term strategic approach to achieve most favorable and optimum outcomes he provided us with high level of professional service.
Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.
Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.
Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.
I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.
Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.
Your email address will not be published. Required fields are marked *