Lloyd's Maritime and Commercial Law Quarterly
TIME LIMITATION IN MARINE CARGO CLAIMS IN DUBAI
The Torbay
For the first time since the Court of Cassation of Dubai was established, a full bench of the court, consisting of its President and all nine judges, was recently convened, to give a definitive construction to the time limitation provisions of Art. 287 of the Federal Maritime Law No. 26 of 1981 (“the Law”), which has received a number of different interpretations over the years. Article 287, as translated, states:
The following claims shall not be heard int he absence of legal excuse, if objected to:
- (a) claims arising out of a marine contract of affreightment after the expiry of a period of one year from the date of delivery of the goods or from the date on which the goods should have been delivered;
- (b) recourse claims against third parties by persons against whom a claim has been made, after the expiry of 90 days from the date the claim was made against him or from the date on which he paid, even though the period set out in the foregoing sub-paragraph may have expired;
- (c) a claim for monies paid otherwise than by way of entitlement, after the expiry of a period of one year from the day on which the person seeking recovery knew of his right to recover.
The appellant in The Torbay and The New Oasis
1 was the underwriter of the cargo, asserting a marine cargo claim on the strength of a letter of subrogation provided to him by the cargo interest. The respondents were the owners and charterers of the respective vessels. The appellant contended that the period of prescription applicable to underwriters under the Law is 15 months, being the sum of the periods under Art. 287(a) and (b), and that any exchange of correspondence or offer of settlement postponed the commencement of this period. The respondents argued
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