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Case 181: MAL 8
Canada: British Columbia Supreme Court (Oppal J. in Chambers)
24 March 1995
Queensland Sugar Corp. v. "Hanjin Jedda" (The)
Original in English
Published in English: [1995] 6 British Columbia Law Reports (3rd) 289
The defendants shipped to the plaintiffs a cargo of raw sugar from Australia to Canada.
The latter alleged the cargo was damaged at sea. A charter-party referred all disputes
between the parties to arbitration. Two months after the plaintiffs commenced the action,
the defendants filed a statement of defence which did not refer to arbitration. After the
case was set for trial, the defendants requested the plaintiffs' consent to commence
arbitration pursuant to Article 8 of the Commercial Arbitration Act, Revised Statutes
of Canada, 1985 (2nd Supplement) Chapter 17, which enacts article 8 MAL.
The court held that the defendants impliedly agreed that the court try the dispute by
participating in the litigation process from its commencement.
The court relied on the Gulf Canada Resources Ltd. v. Arochem International Ltd.
(CLOUT Case no. 31 [...] ) decision and its interpretation of Article
8 MAL to the effect that a stay of proceedings should not be granted if it was applied for
out of time; and that it would prejudice the plaintiffs to refer the matter to arbitration
when the litigation process was well under way.
UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW
CASE LAW ON UNCITRAL TEXTS (CLOUT)
Abstracts of cases
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