Halki Shipping Corp. v. Sopex Oils Ltd

[1998] 1 Lloyd's Rep. 49 (1998)

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Halki Shipping Corp. v. Sopex Oils Ltd

England and Wales High Court of Justice, Queen’s Bench Division, Admiralty Court
[1998] 1 Lloyd's Rep. 49 (1998)

Facts

Halki Shipping Corp. (plaintiff) owned a tanker, the Halki, and entered a contract with Sopex Oils Ltd (defendant) to allow Sopex Oils to ship coconut and palm oil using the Halki. The contract included an arbitrage clause requiring the parties to resolve any dispute by arbitration in London under English law. Halki Shipping then sued Sopex Oils for demurrage, a maritime-law claim, based on Sopex Oils’ failure to load and discharge the Halki within the timeframe outlined in the contract. Sopex Oils offered specific defenses to part of the Halki Shipping suit. Sopex Oils, instead, moved for a stay in proceedings pursuant to § 9 of the 1996 Arbitration Act, arguing Halki Shipping’s claim for damages under its demurrage claim should proceed to arbitration. Halki Shipping opposed the stay, arguing that Sopex Oils lacked a colorable defense against the demurrage claim and that the arbitration clause did not apply to such an indisputable claim. Halki Shipping also asserted that the arbitration panel lacked jurisdiction to make an award regarding an indisputable part of the demurrage claim. Sopex Oil countered that the purpose of the arbitration clause was to submit all disputes arising from the contract to arbitration, including claims by one party that the other party refuses to admit.

Rule of Law

Issue

Holding and Reasoning (Clarke, J.)

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