Aectra Refining and Manufacturing Inc v Exmar NV (The “New Vanguard” and The “Pacifica”) - Court of Appeal (Hirst and Hoffmann LJJ) - 22 July 1994

Practice - Summary judgment - Whether defendants entitled to set off against plaintiff’s undisputed claim in High Court action a disputed liquidated claim made by defendants against the plaintiff in separate arbitration proceedings

In 1987-88 the plaintiff charterers chartered two vessels from the defendant owners. Pacifica was time chartered under a charterparty dated 18 December 1987, and New Vanguard was chartered under charterparties dated 17 November 1987 and 12 April 1988. All the charterparties led to disputes which were referred to arbitration. On 5 October 1992 the parties settled the New Vanguard arbitration. The owners agreed to pay the charterers US$ 120,000 on 7 January 1993. In the Pacifica arbitration, points of claim had been delivered on 15 September 1992. These made a claim of US$ 297,156 for unpaid hire and for bunkers supplied. On 22 December 1992 the Pacifica arbitrator made an interim award of US$ 42,070 as indisputably due. The rest remained disputed, the charterers contending that the ship was off hire during the relevant periods and that nothing was due for bunkers.