Abstract

10 October 2003 Colman J Commercial Court [2003] EWHC 2320 (Comm) [2003] ArbLR 26 Arbitration proceedings--Definition--Whether arbitration proceedings are `legal proceedings' for the purposes of Art 11 of the Convention on the Limitation of Liability for Maritime Claims 1976 (yes) `Legal proceedings' in Art 11 of the Convention on the Limitation of Liability for Maritime Claims includes commencement of arbitration Chin Tai held a bill of lading issued by ICL who were the owners of a vessel that sank in the Malacca Strait with all cargo. The bill of lading incorporated a London arbitration clause. Chin Tai arrested another ship owned by ICL in Singapore. This was subsequently released against a letter of undertaking inter alia to pay the amount of any award in the arbitration. An award was rendered in favour of Chin Tai. The arbitrators ordered ICL to pay damages of £2,696,127.15 and interest. Prior to the award, ICL issued a limitation claim form pursuant to Art 11 of the 1976 Convention on the Limitation of Liability for Maritime Claims and made payment into court of which Chin Tai's share was £1,265,288.77. ICL then applied to the Admiralty Court for an order for the release of