Swiss Rules arbitration

The Swiss Rules of International Arbitration (the Swiss Rules) and the Swiss Arbitration Centre (SAC)

The Swiss Chambers of Commerce have offered arbitration services for over 150 years. The Swiss Rules of International Arbitration (the Swiss Rules) were first drafted and adopted by the various Swiss Chambers of Commerce in 2004. These rules enabled them to offer uniform, efficient and cost effective means of dispute settlement. Arbitration under the Swiss Rules is administered by the Swiss Arbitration Centre

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Section 69 appeal—court clarifies scope of repudiation compensation (Olam Global Agri Pte Ltd v Holbud Ltd)

Arbitration analysis: This decision concerns Olam Global Agri Pte Ltd’s (Seller or Olam) section 69 appeal under the Arbitration Act 1996 (the ‘Act’) against a Grain and Feed Trade Association (GAFTA) Board of Appeal (BOA) award (BOA Award) in favour of Holbud Ltd (Buyer or ‘Holbud’) arising out of a GAFTA 49 FOB sale contract dated 19 November 2021 (the ‘Contract’). The appeal raised two issues: (a) whether an innocent party must prove its own ability to perform its contractual obligations in order to recover substantial damages where the counterparty has repudiated the contract by wrongly declaring force majeure; and (b) whether Clause 6 of GAFTA 49 (‘Clause 6’) permits a substitute vessel to be nominated at any time before the innocent party accepts that repudiation. In setting aside the BOA Award, the Commercial Court held that a wrongful force majeure notice does not, without more, relieve the Buyer of the need to prove it could have performed its own obligations to recover substantial damages. The court also found that Clause 6 does not permit substitution of a nominated vessel outside the clause’s strict timing requirements. Holbud’s claim for substantial damages therefore failed. The case underscores the corrective function of section 69 of the Act (‘Section 69’) and provides important guidance on the application of the compensatory principle in assessing damages following repudiatory breach. Written by Dr Ademola Bamgbose, solicitor advocate and senior associate at Hogan Lovells, London and Sofie Gowran, trainee solicitor at Hogan Lovells, London.

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