Paal Wilson & Co A/S v. Partenreederei Hannah Blumenthal (The Hannah Blumenthal) - House of Lords (Lords Diplock, Keith, Roskill, Brandon & Brightman) - 2 December 1982

Arbitration agreement not frustrated by delay

A dispute arose between buyers and sellers under a Norwegian Sale Form contract dated 23 September 1969 involving the vessel Hannah Blmenthal . In 1972 both parties appointed their arbitrators. Under the arbitration clause a third arbitrator should have been appointed, but this was never done. Neither side made application for directions. In February 1974 the buyers delivered their points of claim. The sellers delivered points of defence in June 1974. Apart from some occasional correspondence between solicitors, no further steps were taken by the buyers. In August 1980 the sellers issued a writ seeking a declaration and an injunction to stop any further proceedings in the arbitration.