Commencing an arbitration: time limits.

It is open to the parties to vary the periods laid down in the Limitation Act 1980 for the commencement of proceedings. In the shipping industry, and for cargo claims in particular, time limits are relatively short and failure to adhere to them removes not just the right to go to arbitration but also defeats the claim itself so that there is no alternative possibility of bringing court proceedings.

However, section 12 of the Arbitration Act 1996 does permit the court to extend time if there are exceptional circumstances justifying extension. In P v Q; Q v R; R v S [2018] EWHC 1399 (Comm) the two issues were the construction of the time-bar clause, notably whether it held good even though compliance was impossible, and whether the court should extend time for the bringing of arbitral proceedings.