Sunday, January 18, 2015

CNT SA v Mediterranean Shipping

CNT (Compagnie de Navigation et Transport) had insured goods which were the subject of a contract between MSC and a third party. The contract (in the form of a bill of lading) provided for arbitration. MSC had signed the copy; the third party had signed another copy which was labelled ‘certified copy of the original’. Upon delivery, the third party endorsed the bill of lading by signing it. Upon delivery, goods were discovered to be missing. CNT paid the third party under the insurance and claimed against MSC before the Tribunal of First Instance in Geneva. MSC argued that the courts of Geneva did not have jurisdiction due to the arbitration clause in the bills of lading. The Tribunal of First Instance held that it did have jurisdiction, a decision reversed by the Court of Justice. CNT appealed.

The Swiss Federal Tribunal dismissed CNT’s appeal. It held that Article II NYC was the only applicable instrument, as the seat of the tribunal was not in Switzerland (therefore Swiss arbitration law was inapplicable). It further decided that Article II(3) NYC allows a court to determine the validity of international agreements, although it prohibits them from applying grounds which are not part of the international legal order. With respect to the signature of the bill of lading, the Tribunal held that in some cases certain conduct, compliant with good faith, could be considered to replace the observance of formal requirements (3), as was the case here.

Source: http://www.newyorkconvention1958.org/index.php?lvl=notice_display&id=564

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