CYY v. CYZ: Jurisdiction Challenge in Marine Salvage Arbitration

In CYY v. CYZ, the General Division of the High Court of Singapore addressed CYY's challenge to an arbitral tribunal's jurisdictional ruling. CYY sought a declaration that the tribunal lacked jurisdiction to hear certain claims by CYZ, related to a dispute in the marine salvage industry. The court, presided over by Justice Philip Jeyaretnam, dismissed CYY's application, holding that the tribunal had jurisdiction to determine the disputed claims. The key legal issue was the interpretation of a contractual clause concerning procurement services. The court found that the interpretation of this clause was a matter of admissibility, not jurisdiction, and agreed with the tribunal's interpretation in any event.

1. Case Overview

1.1 Court

General Division of the High Court of the Republic of Singapore

1.2 Outcome

Application dismissed

1.3 Case Type

Arbitration

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

CYY challenges the arbitral tribunal's jurisdiction over CYZ's claims, arguing they fall outside the contract's scope. The court dismisses the challenge, affirming the tribunal's jurisdiction.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
CYYClaimantCorporationApplication dismissedLost
CYZRespondentCorporationJurisdiction upheldWon

3. Judges

Judge NameTitleDelivered Judgment
Philip JeyaretnamJudge of the High CourtYes

4. Counsels

Counsel NameOrganization
Vergis S AbrahamProvidence Law Asia LLC
Leo Zhi Wei (Liang Zhiwei)Providence Law Asia LLC
Cai Jianye EdwinCLASIS LLC
Tay Xi Ying (Dai Xiying)CLASIS LLC
Tham LijingTham Lijing LLC
Lim Qiu Yi, ReginaTham Lijing LLC
Parhar Sunita SonyaS.S Parhar Law Corporation

4. Facts

  1. CYY and CYZ are companies in the marine salvage industry.
  2. CYY was engaged to provide urgent salvage services for a vessel.
  3. CYY chartered CYZ's crane barge for the salvage operation.
  4. A contract was signed between CYY and CYZ, governed by Singapore law, with an arbitration clause.
  5. Clause 39 of the contract stipulated charges for consumables, communications, medicine, and procurement services at cost plus 15%.
  6. CYZ claimed CYY owed money for procurement services rendered during the salvage operation.
  7. CYY challenged the tribunal's jurisdiction, arguing the claims fell outside the contract's scope.

5. Formal Citations

  1. CYY v CYZ, Originating Application No 624 of 2022, [2023] SGHC 101

6. Timeline

DateEvent
Charterer engaged to provide urgent salvage services.
Mr. X provided the Owner with a preliminary list of equipment and personnel required.
Charterer and Owner entered into an agreement to charter the Crane Barge.
Salvage Operation concluded.
Owner issued a letter of demand in respect of the Disputed Claims.
Owner commenced arbitration proceedings against the Charterer.
Arbitral tribunal issued a positive jurisdictional ruling.
CYY filed 1st Affidavit.
Mr X filed 1st Affidavit.
Mr Y filed 1st Affidavit.
CYY filed 2nd Affidavit.
Mr Z filed 1st Affidavit.
Claimant’s Written Submissions.
Judgment reserved.
Judgment issued.

7. Legal Issues

  1. Jurisdiction of Arbitral Tribunal
    • Outcome: The court held that the arbitral tribunal had jurisdiction to determine the disputed claims.
    • Category: Jurisdictional
    • Sub-Issues:
      • Scope of arbitration agreement
      • Interpretation of contractual clauses
  2. Interpretation of Contractual Clause
    • Outcome: The court agreed with the Tribunal’s interpretation of the clause.
    • Category: Substantive
    • Sub-Issues:
      • Scope of 'procurement services'
      • Application of cost plus 15% markup

8. Remedies Sought

  1. Declaration that the Tribunal does not have jurisdiction to hear certain claims brought by CYZ

9. Cause of Actions

  • Breach of Contract
  • Quantum Meruit

10. Practice Areas

  • Arbitration
  • Commercial Litigation

11. Industries

  • Maritime
  • Marine Salvage

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Sanum Investments Ltd v Government of the Lao People’s Democratic RepublicCourt of AppealYes[2016] 5 SLR 536SingaporeCited for the principle that a review on jurisdiction pursuant to s 10(3)(a) IAA is conducted de novo.
BTN and another v BTP and anotherCourt of AppealYes[2020] 5 SLR 1250SingaporeCited for the principle that the court must guard against ingenious attempts to disguise substantive challenges as challenges to jurisdiction.
Swissbourgh Diamond Mines (Pty) Ltd and others v Kingdom of LesothoCourt of AppealYes[2019] 1 SLR 263SingaporeCited for the distinction between jurisdiction and admissibility in arbitration.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
International Arbitration Act 1994Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Arbitration
  • Jurisdiction
  • Marine Salvage
  • Procurement Services
  • Charter Party
  • Salvage Operation
  • BIMCO Supplytime 2017
  • Crane Barge

15.2 Keywords

  • arbitration
  • jurisdiction
  • marine salvage
  • contract law
  • Singapore

17. Areas of Law

Area NameRelevance Score
Arbitration90
Contract Law80
Jurisdiction70
Breach of Contract60
Commercial Law50
Marine Salvage40
Admissibility30

16. Subjects

  • Arbitration
  • Contract Law
  • Jurisdiction