| Archives: August 2009

Award N°1162 – (Second degree) – Time C/P – Carriage of bagged rice under b/l – Cargo damage – Letter of guarantee – Ostensible authority – Jurisdiction. Although the Letter of guarantee from the owner’s P&I Club was issued “on behalf of owner and/or carriers” and stipulates that the jurisdiction of the CAMP ” is expressly accepted by all parties whose interest lie with the vessel ”, it appears that the defendant, being the timecharterer and carrier was not involved in the negotiation of the terms of the Letter of guarantee. As a result there was no ostensible authority to believe that the defendant could be bound by the terms of the Letter of guarantee of the Owner’s P&I Club. The Tribunal lacked jurisdiction over the claim brought by cargo interests against the time-charterer.