014 National Union Fire Insurance Company v. Stolt Nielsen

014 National Union Fire Insurance Company v. Stolt-Nielsen GR No. 87!8" #pril $%& 10 EMERGENCY RECIT :

United Coconut Chemicals (SHIPPER) shipped distilled fatty acid on  board M !StoltSceptre" (C#RRIER)$ he shipment %as insured under a marine car&o policy %ith 'ational Union ire Insurance Co (I'SURER)$ Upon receipt of the car&o by the consi&nee in 'etherlands it %as totally contaminated$ Hence claim %as made on the I'SURER of the car&o$ he I'SURER as subro&ee filed a claim for dama&es a&ainst the C#RRIER %ith RC Manila$ he C#RRIER in*o+ed that arbitration must be done pursuant to the Charter$ he I'SURER opposed ar&uin& that the pro*ision on arbitration %as not included in the ,ill of  -adin&$ -adin&$ SC: he he I'SURER I'SURER cannot cannot a*oid a*oid the bindin& bindin& effect effect of the arbit arbitrat ration ion claus clause$ e$ ,y subro&ation it became pri*y to the Charter Party as fully as the SHIPPER before the latter %as indemnified because as subro&ee it stepped into the shoes of the SHIPPER and is subro&ated merely to the latter.s ri&hts$ FACTS : •

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/n 0 1anuary 2034 United Coconut Chemicals Inc$ shipped 565$775 metric tons of  distilled C89C23 fatty acid on board M Stolt Sceptre a tan+er o%ned by Stolt9'ielsen Philippines Inc$ from ,auan ,atan&as Philippines consi&ned to 'ieu%e Mate; at Rotterdam 'etherlands co*ered co* ered by an+er ,ill of -adin& ,- 'o$ ,#92$ ,#92$ he shipment %as insured under a marine car&o policy %ith Petitioner 'ational Union ire Insurance Company of Pittsbur& (hereinafter referred to as I'SURER) a non9life #meric #merican an insura insurance nce corpor corporati ation on throu&h throu&h its settl settlin& in& a&ent a&ent in the Philip Philippin pines es the #merican International Under%riters (Philippines) Inc$ the other petitioner herein$ Upon receipt of the car&o by the consi&nee in the 'etherlands it %as found to be discoloured and totally contaminated$ Hence a claim %as made on the Insurer of the car&o$ he insurer as subro&ee filed a claim for dama&es a&ainst the carrier %ith the RC of Manila$ he carrier filed a motion to dismiss on the &round that the case %as arbritrable and  pursuant to the charter party as embodied in the bill of ladin& arbitration must be done$ he insurer opposed the motion by ar&uin& that the pro*ision on arbitration %as not included in the bill of ladin& and e*en if it %as included it %as ne*ertheless un
ISSUE :

#re the terms of the Charter Party particularly the pro*ision on arbitration bindin& on the I'SURER> HELD:

?es$ ?es$ he pertinent portion of the ,ill of -adin& in issue pro*ides in part:

;;; @ A]ll  A]ll the terms whatsoever of o f the said Charter e;cept the rate and payment of frei&ht spec specif ifie ied d ther therei ein n apply apply to and &o*er &o*ern n the the ri&h ri&hts ts of the the part partie iess conce concern rned ed in this this shipment$;;;

he pro*ision on arbitration in the Charter Party reads: 5$ #rbitration$ #ny dispute arisin& from the ma+in& performance or termination of this Charter Party shall be settled in 'e% ?or+ /%ner and Charterer each appointin& an arbitrator %ho shall be a merchant bro+er or indi*idual e;perienced in the shippin&  businessA the t%o thus chosen if they cannot a&ree shall nominate a third arbitrator %ho shall be an admiralty la%yer$ Such arbitration shall be conducted in conformity %ith the  pro*isions and procedure of the United States arbitration act and a