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{\*\bkmkstart Ports_Authority_v_CT_Marketing_Ltd_2}PORTS AUTHORITY OF FIJI v C & T MARKETING LTD. }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 (No. 2)}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
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\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Court of Appeal Civil Appellate Jurisdiction
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\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Salvage towage - appeal against liability and quantum of judgment - whether arbitrator}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{
\i\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s awards on 2 additional items: salvage, and further loss consequent upon the Appellant}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{
\i\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s actions, within jurisdiction \endash  whether the parties widened the scope of submission to the arbitrator, either by agreement, or by their conduct \endash 
 whether salvage towage amended existing claim or added a new head of claim \endash  Respondent limited to Statement of Claim}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
s prayer for relief - Ports Authority of Fiji Act s41
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 \fs24\lang3081\langfe3081\cgrid\langnp3081\langfenp3081 {\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526 The Judgment follows
 on from leave granted after (No. 1). The Appellants appealed against findings of an arbitrator, upheld by the High Court, on a claim for $174,666.60 for salvage, and a further claim for $125,000 for further loss of a vessel Seniceva, consequent upon the 
Appellant}{\lang2057\langfe3081\langnp2057\insrsid8064526 '}{\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526 
s actions. The Appellant claimed the award for these two items were outside the ambit of submission to arbitration. It raised 2 defences: since the Appellant was not the owner of the Archer it could not be held liable for salvage; second, section 
41 of the Ports Authority of Fiji Act barred such a claim.}{\lang2057\langfe3081\langnp2057\insrsid8064526  }{\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526 Respondent counsel submitted that he then Appellant}{
\lang2057\langfe3081\langnp2057\insrsid8064526 '}{\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526 s counsel agreed before the arbitrator that these additional items were to be included, and that the Appellant ought to be bound by counsel}{
\lang2057\langfe3081\langnp2057\insrsid8064526 '}{\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526 s conduct. The Court found no evidence of such agreement but Respondent counsel}{\lang2057\langfe3081\langnp2057\insrsid8064526 '}{
\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526 s letter appeared to the contrary, as was the arbitrator}{\lang2057\langfe3081\langnp2057\insrsid8064526 '}{\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526 
s ruling that the matters sought for inclusion were outside his jurisdiction. The Court found that the Respondent was limit
ed to its prayer for relief as contained in the Statement of Claim, and to the submission to arbitrator, and that the two matters fell out of scope of both.}{\lang2057\langfe3081\langnp2057\insrsid8064526  }{
\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526 
\par 
\par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Held \endash  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 term }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 salvage}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
 as used in the Statement of Claim was used to support or elaborate the claim for $49,500.00 referred to arbitration. The claim for }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 salvage towage}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
 was additional to the claim and added a new head of claim.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
The two additional items were outside the scope of the prayer for relief which the statement of claim expressly asked and gave notice of. Even if the additional items were regarded as within scope, without the other party}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s agreement, they could not have the effect of enlarging the scope of submission to the arbitrator.
\par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 \fs24\lang3081\langfe3081\cgrid\langnp3081\langfenp3081 {\b\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526 
\par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Arbitrator}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s award is set aside to the extent that the two additional items for 
salvage, and a further claim of further loss consequent upon the Appellant}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s actions
, together with the interest awarded on them, are deleted.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The award is otherwise confirmed, with costs. 
\par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 \fs24\lang3081\langfe3081\cgrid\langnp3081\langfenp3081 {\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526 
\par [Note: the Ports Authority Act, renamed Maritime and Ports Authority of the Fiji Islands Act is revoked by the Sea Ports Management Act 2005 8/05 WEF 5 August 2005]
\par 
\par }{\b\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526 Cases referred to in Judgment
\par }{\b\i\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526 Cargrill v Bower}{\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526  (1878) 10 ChD 502
\par }{\b\i\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526 Dillon v Macdonald}{\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526  (1902) 21 NZLR 375
\par }{\b\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526 
\par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
Robert A Smith for the Appellant
\par Devanesh Sharma for the Respondent
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\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth4068\clshdrawnil \cellx3960\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth4788\clshdrawnil 
\cellx8748\pard\plain \ql \li0\ri0\nowidctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0\pararsid8141824 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid8064526\charrsid8064526 18 October, 2001
\cell  }{\b\caps\fs24\lang2057\langfe1033\langnp2057\insrsid8064526\charrsid8064526 judgment}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526\charrsid8064526 \cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {
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\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Eichelbaum, Henry, Gallen, JJA}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid4667361 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid8064526\charrsid8064526 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The Respondent had to have work carried out on the ships to get them seaworthy and acceptable for registration.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 After a delay, the sale was completed.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
There were disputes between the parties relating to the work carried out and the consequent delay.
\par 
\par Later, and separately, another issue arose.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 On 10 March 1996 a vessel named }{
\i\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 MV Archer}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526  caught fire and was burning in Suva harbour.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The Appellant requested the Respondent to assist with the Seniceva.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Although the Respondent protested that the Seniceva was a pilot boat not suited for a rescue operation it made the ship available.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 It assisted with towage and other services.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
Following legal advice it seems to have been accepted that these services were outside the scope of the pilot boat services contract.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 A dispute arose over the appropriate value of the services, and the cost of repairing the Seniceva, which sustained damage in the operation.
\par 
\par The parties agreed to refer their several disputes to the arbitration of an experienced barrister and solicitor.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
The relevant part of the submission to arbitration read as follows:}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361 
\par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid8064526\charrsid8064526 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 WHEREAS}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526  disputes have arisen between the undersigned }{
\fs24\ul\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 C & T MARKETING LIMITED}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526  OF Suva in Fiji and }{
\fs24\ul\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 THE PORTS AUTHORITY OF FIJI}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526  having its registered place of business at Suva in Fiji concerning firstly:-}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526\charrsid8064526 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 (a)\tab C&T Marketing Limited}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
s claim for $75,000.00 being the costs of complying with the requirement on the part of the Ports Authority of Fiji to give a valid Bill of Sale over the vessels MN Anonyma and MV Seniceva.
\par 
\par (b)\tab C&T Marketing Limited}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s claim for $49,500.00 being charges for services rendered by C&T Marketin
g Limited to Ports Authority of Fiji.
\par 
\par (c) \tab C&T Marketing Limited}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s claim for damages for the repair of MV Anonyma and MV Seniceva amounting to $16,441.00.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 It is alleged that such repairs became necessary as a result of services performed for and on behalf of Ports Authority of Fiji.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 It is further alleged that such services were rendered outside the scope of normal Piloted services.
\par 
\par (d)\tab PAF}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s claim for $39,062.50 being the interest on the purchase price of the two pilot boats which C & T Marketing Limite
d did not settle until fifteen months later.
\par 
\par Alternatively, if it is established that the vessels have not been physically delivered to C & T Marketing Ltd., until September 1995, then PAF claims a hire rate for the two vessels at $200 per vessel per day for a period of fifteen months.
\par 
\par }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 AGREEMENT TO ARBITRATE
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The Parties desire to have those disputes settled by Arbitration.
\par 
\par }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 APPOINTMENT}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par Now in pursuance of the premises we, }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 C&T MARKETING LIMITED}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526  and }{
\fs24\ul\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 THE PORTS AUTHORITY OF FIJI}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526  jointly appoint you to be the 
sole Arbitrator to determine all matters in dispute between us as above setforth.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par There were formal pleadings.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The Respondent}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s statement of claim referred to the first three matters listed in the submission in appropriate detail, concluding:
\par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 
\par "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 In summary the Plaintiffs total claim is as follows:-}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526\charrsid8064526 
\par }\pard \ql \li2160\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin2160\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 (a) \tab $}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 75,500.00
\par (b) \tab $}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 49,500.00
\par (c) \tab $}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 16,441.00
\par Total\tab $140,941.00
\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par The Plaintiff therefore prays for the following relief:}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361 
\par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid8064526\charrsid8064526 
\par }\pard\plain \s16\ql \li720\ri0\nowidctlpar\faauto\rin0\lin720\itap0\pararsid8064526 \f29\fs24\lang1033\langfe3081\cgrid\langnp1033\langfenp3081 {\f0\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526 (i) \tab An award in the sum of $140,941.00

\par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8064526 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 (ii) \tab Costs

\par (iii) \tab Such other relief as the Arbitrator may feel deem just.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526  (sic)
\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par The counterclaim gave details of the fourth item in the submission and concluded: }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361 
\par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid8064526\charrsid8064526 
\par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 WHEREFORE the Defendant Claims:
\par (a) \tab the sum of $40,625
\par (b) \tab Damages
\par (c) \tab Settlement }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 (sic)}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526  thereon
\par (d) \tab Costs
\par (e) \tab Such further or other orders it is deemed just.}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par The arbitration proceeded and on 10 October 1997 the Arbitrator issued a document headed }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Arbitrator}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s Decision}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526  which in fact recorded decisions relating to liability alone. It comprised a comprehensive rehearsal of the disputes and of the Arbitrator}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s reasons for his conclusions that in all but one respect the Respondent succeeded on the liability issues. 
However, on quantum, although setting out relevant considerations in detail, he did not announc
e any conclusions but called for further assistance. In regard to the claim for services for the MV Archer the Arbitrator discussed the principles relating to salvage claims and what he described as extra claims allowed in respect of towage being in the n
ature of salvage.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 He said }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361 
\par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid8064526\charrsid8064526 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 In addressing me on quantum relevant to the second and third claims the parties need to bear these principles in mind.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par 
\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 He went on }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526\charrsid8064526 
\par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
In considering this rather complex matter and the law applicable it was apparent that the parties lacked clarity on the relevant law and the practice on which the law is based.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 It is for this reason I have made some effort to research and explain these and carefully analyse}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 what has been presented to me.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 This lack of cla
rity flows on into the parties analysis and presentation of what quantum should or should not be awarded.
\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
It is therefore only fair that the parties, with now a clearer statement of the principles involved, should further consider these and address me on the matter of quantum.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par The one item where the Respondent failed on liability related to repairs to the Anonyma.
\par 
\par The delivery of the arbitrator}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s decision led to an application by the Appellant
 to the High Court to set aside the award and to stay enforcement of the award.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The main thrust of the Appellant}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
s complaint seems to have been that the Arbitrator had no authority to split the hearing between liability and quantum, a step the Arbitrator took of his own initiative. The Appellant also argued that th
e award was not in accord with the evidence, and that the Arbitrator had taken irrelevant or inadmissible matters into account. It claimed that the Arbitrator was guilty of misconduct, within the technical meaning of that term in arbitration law. In a jud
gment delivered on 20 May 1998 the Judge held that there had been no misconduct and directed that the matter be referred back to the Arbitrator to allow him to complete his findings on quantum. 
\par 
\par Following delays caused by a change of legal advisers for the Defendant, the Arbitrator indicated he wished to bring the matter to a prompt conclusion.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 By letter dated 1 October 1998 he announced that he found the Respondent had established }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 its special damages}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
 namely costs in bringing the vessels to registrable standard, $75,000; costs of services rendered re }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Archer}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 , $49,500; and costs of repairs to the Seniceva, $16,441.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 He stated that interest was payable on these amounts, which in each case represented the amount claimed by the Respondent. He then referred to three further items
: salvage award, other losses consequent upon the Appellant}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
s action, and costs, saying he required submissions in respect of damages, and setting out a timetable for such submissions.
\par 
\par In response the Respondent}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s solicitors submitted
 a claim for $174,666.60 for salvage, and a further claim for $125,000 under the heading of further loss consequent upon the Appellant}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s actions.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 We will refer to these two heads of claim as }{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 the additional items}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 . The second was premised on the contention that the Appellant}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
s refusal to pay for the services performed by the Seniceva and the repair costs had sent the Respondent into severe financial difficulties, leading the bank which had lent on the security of the vessel to realise its security and seize the vessel.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 On this reasoning the Respondent claimed the sum of $125,000 being the value placed on the Seniceva. 
Together with the items already decided by the Arbitrator and interest and costs the Respondent}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s total claim now came to $577,118.

\par 
\par In reply the solicitors for the Appellant maintained that the additional items were outside the ambit of the submission to arbitration.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 In regard to salvage they raised two further defences, first that since the Appellant
 was not the owner of the Archer it could not be held liable for salvage; second, such a claim was barred by section 41 of the Ports Authority of Fiji Act. We record that these two defences have not been in issue before us.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par 
\par After this there were further meetings and correspondence, and unsuccessful negotiations between the parties.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
On 14 December 1998 the Arbitrator issued a document headed }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Arbitrator}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s decision on the quantum of damages.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 " }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
In this he confirmed his award on the three items dealt with in his earlier letter and dealt with interest on those awards.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
In relation to the salvage claim and the consequential losses he stated:}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526\charrsid8064526 
\par }\pard \ql \li561\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin561\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The Defendant
 contends that the }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 salvage}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526  claim and the consequential losses are not part of the terms of reference and therefore outside the scope of this arbitration.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 As I have already observed the Arbitration Agreement is brief and doesn}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 t refer to such matters.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par 
\par However the matter is expanded in the pleadings namely the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s Statement of Claim dated 6 March 1997 and the Defendant}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s Defence and counter-claim dated 26 March 1997.}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526\charrsid8064526 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The Statement of Claim prayer after referring to the Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s special damage claim then adds}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526\charrsid8064526 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 (ii) }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Costs
\par (iii) Such other relief as the Arbitrator may feel deem just.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par 
\par And similarly the Defendant prays for special damages, general damages, costs and }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 such further or other orders it is deemed just}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par Neither party sought to preclude these claims on the basis they were not intended to be part of the terms of reference both dealt rather with the merits of the respective damage claims.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par We are not quite sure what the Arbitrator wished to convey by the last sentence which taken literally is difficult to reconcile with the first.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Undoubtedly the first sentence was correct.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The Appellant}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
s stance was that by way of alternative to its primary contention, namely that these items were not within the submission to arbitration, it would address them on their merits.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The Arbitrator appeared to accept}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
the submission did not cover these two items but took the view that in effect, the scope of the arbitration had been extended by reason of the pleadings.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par 
\par In dealing with the two additional items of claim on their merits, he held that a contract of towage which amount to }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 salvage towag
e or in the nature of the towage}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526  could lead to }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 extra compensation}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526  for the extra work and risks involved.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Under this head he awarded $95,000.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 He also allowed the Respondent}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
s claim for the loss of the Seniceva at the figure claimed, $125,000.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Together
 with interest and costs, the final total award was for $501,412.63.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The Appellant}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
s response was to reactivate the High Court proceedings and attempt to have the award set aside.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
Unfortunately, this gave rise to a number of procedural complications and arguments.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
The extent of these side issues is shown by the fact that in the Appellant}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
s lengthy submissions, the point which is now at the heart of this appeal was not raised until the second last page.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 In the 
Respondent}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s submissions in reply the issue was reached at p30.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The lack of prominence thus given to the issue by the parties helps to explain why in the judgment dated 28 October 1999 the Judge did not refer to this aspect at all.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The main matter he dealt with related to the Appellant}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s attempt to raise a statutory defence based on {\*\bkmkstart s41_Ports_Auth_Act_Ports_v_Marketing_2}s.41 of {\*\bkmkend s41_Ports_Auth_Act_Ports_v_Marketing_2}the Ports Authority Act.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Having confirmed that the Appellant}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s application to set aside the award was still unresolved, he now dismissed that application and confirmed the award.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 It is from that judgment that the present appeal has been brought.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par 
\par Before this Court the sole argument has been whether the awards on the two additional items were within the Arbitrator}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
s jurisdiction.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 It is beyond question that they were not among those contained in the submission to arbitration.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 So the issue comes down to whether the parties widened the scope of the submission, either by agreement, or by their conduct. 

\par 
\par Mr Sharma}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s principal argument was that he and counsel then acting for the Appellant
 agreed before the Arbitrator that these additional items were to be included.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 He submitted argument to us to show that the 
Appellant ought to be bound by counsel}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s conduct.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par 
\par There is no record or evidence of such an agreement, and the indications in contemporary documents are against its existence.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
In their letter of 27 October 1998 the Appellant}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s solicitors raised the question of jurisdiction in plain terms.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Had there been an agreement that would have been the obvious reply but instead, in their letter of the next day, the Respondent}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s solicitors said}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526\charrsid8064526 
\par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Your client is attempting to
 avoid liability by arguing that some of the claims that we have submitted were not included in the Arbitrators Terms of Reference.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 This appears to be a misconception on the part of the MPAF.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
What we submitted to the Arbitrator was details of our client}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s claim for special damages.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Any claim on general damages would have depended on the Arbitrators finding on the issue of liability.
\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The Arbitrator found in our client}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s favour on the issue of liability.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Following from this the Arbitrator then discussed the issue of general damages that were available to our client under the principles of salvage.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The Arbitrator then requested that the parties address him on the issue of general damages i.e. salvage claims.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
He clearly anticipates that our client will resort to a further arbitration or court action if the salvage claims are not resolved now.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 {\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par The last sentence is significant.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 It is tantamount to a concession that the Appellant}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
s point may be correct, but that it would be best to have the additional issues dealt with now, thus avoiding the need for separate proceedings.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Equally significant is the way in which the Arbitrator later dealt with the submission that these matters were outside his jurisdiction.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
He said, in a passage already quoted, that the matters had been opened up by the way the prayers for relief in the statement of claim and the counterclaim had been framed.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 He did not rely on any purported agreement.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
Thus we cannot accept the argument that the scope of the submission was extended by agreement between counsel.
\par 
\par So far as the pleadings are concerned, the body of the statement of claim simply dealt with the items which had specifically been referred to arbitration.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
It is true that in developing the claim for $49,500.00 for services rendered, the statement of claim used the term salvage. However, the term was used to support or elaborate the claim for $49,500.00.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  
}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 It may be noted that the Respondent}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
s submissions preceding the first award made no mention of the additional items, being confined to the headings (and the amounts) set out in the reference to arbitration, and the statement of claim.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 As will have been seen, the claim for }{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 salvage towage}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526  was additional to the claim for $49,500.00.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 In other words it was not a matter of amending an existing claim but of adding a new head of claim, albeit arising from the same basic events as gave rise to the first claim.
\par 
\par There remains the argument based on the prayer for general relief.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
A prayer for general relief is always limited by two things, the facts which are alleged, and the relief which is expressly asked: }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 {\*\bkmkstart Cargrill_v_Bower_Ports_v_Marketing_2
}Cargrill v Bower}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526  {\*\bkmkend Cargrill_v_Bower_Ports_v_Marketing_2}(1878) 10 ChD 502, 508.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Notwithstanding the general prayer the Plaintiff must be limited to relief of the kind the statement of claim notifies will or may be asked for: }{
\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 {\*\bkmkstart Dillon_v_Macdonald_Ports_v_Marketing_2}Dillon v Macdonald}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526  
{\*\bkmkend Dillon_v_Macdonald_Ports_v_Marketing_2}(1902) 21 NZLR 375, 378.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
For the reasons already stated, the two additional items were outside the scope of the relief of which the body of the statement of claim gave notice.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 In any event, even if the additional items could be regarded as within the scope of the prayer for general relief, this could not, without the other party}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 s agreement, have the effect of enlarging the scope of the arbitration agreement.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Finally, the distinction which the Arbitrator sought to draw between general and special damages does not, with respect, provide any solution.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Of the first three items in the submission (a) and (c) clearly could be described as special damages.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Item (b) is more arguable but might be placed under the same heading.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 However, in the context of an arbitration submitting specific disputes for resolution, the distinction is artificial and irrelevant.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  
}{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Even had the Respondent overtly claimed general damages, this would have been met by the answer that no such heading had been included in the submission.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
One separate matter the subject of discussion before us was the appropriate approach to interest accruing after the date of the award. However, the proceedings before us do not involve that issue
, and as we are not seized of it, we decline to give a ruling on it.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 For the reasons given we must allow the appeal.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
We do so with regret, because the Appellant had ample opportunity to consider and answer the claims for the additional items, and the Arbitrator dealt with them fully and carefully.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 The appeal is allowed and the award is set aside to the extent that the two additional items, together with the interest awarded on them, are deleted.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Save as just indicated the award is confirmed.}{\fs24\lang2057\langfe1033\langnp2057\insrsid8064526  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 We allow the Appellant the sum of $1,500.00 costs together with reasonable disbursements as certified by the Registrar, including the cost of preparation of the record.
\par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 
\par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid4667361\charrsid8064526 Appeal allowed.
\par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid8064526 \fs24\lang3081\langfe3081\cgrid\langnp3081\langfenp3081 {\lang2057\langfe3081\langnp2057\insrsid4667361\charrsid8064526 
\par }{\insrsid4667361\charrsid8064526 Marie Chan}{\lang2057\langfe3081\langnp2057\insrsid1972231\charrsid8064526 
\par }}