London Arbitration 7/94

Whether respondents entitled to set-off against any damages recovered by claimants the amount claimed by respondents against claimants in separate arbitration proceedings

The vessel was chartered under the NYPE form. Disputes arose and the owners brought arbitration proceedings against the charterers. The charterers purported to set off against the owners’ claim a claim which the charterers themselves had brought against the owners in entirely separate arbitration proceedings before a different tribunal. The charterers said that they were entitled to exercise a legal set-off for the amount of their claim in the other arbitration against any amount for which they might be held liable in the present reference. The charterers relied on an unreported Court of Appeal decision.