SLB & Ors v PAK & Ors (High Court of Justice, Commercial Court [2026] EWHC 449 (Comm))

Procedural record

1. 27 February 2025Arbitration

   27 February 2025Arbitration

   Ten arbitral awards dated 27 February 2025

   Decision summary

   The Tribunal unanimously held that the obligation in each shipbuilding contract to provide a Refund Guarantee within 120 days, or such later date as the Buyer designated in writing, was an innominate term rather than a condition. The Buyers could exercise the contractual right to cancel for failure to provide the guarantees, but were not entitled to loss of bargain damages.

   Participants

   First to Eighth Claimants

   Ninth and Tenth Claimants

   The three Defendants

   1 year and 3 days later · 368 days

2. 2 March 2026England and Wales

   2 March 2026England and Wales

   Judgment of the High Court of Justice, Commercial Court in the case SLB & Ors v PAK & Ors [2026] EWHC 449 (Comm) dated 2 March 2026

   High Court of Justice, Commercial Court

   Decision summary

   The court dismissed the section 69 appeals against ten arbitral awards. It held that the shipyard's obligation under Article X(A)(f) of the shipbuilding contracts to provide a Refund Guarantee within 120 days was an innominate term, not a condition; the contractual cancellation right did not carry an entitlement to loss of bargain damages.

   Participants

   First to Eighth Claimants

   Representative

   Michael Ashcroft KC (For: First to Eighth Claimants)

   Representative

   Socrates Papadopoulos (For: First to Eighth Claimants)

   Ninth and Tenth Claimants

   Representative

   Mr Southern KC (For: Ninth and Tenth Claimants)

   Representative

   Mr Mander (For: Ninth and Tenth Claimants)

   The three Defendants

   Representative

   Mr O'Sullivan KC (For: The three Defendants)

   Representative

   Alexander Wright KC (For: The three Defendants)

   Representative

   Henry Ellis (For: The three Defendants)

   High Court of Justice, Commercial Court

   Judge

   Mr Justice Calver

   Authorities cited

   27

   • Arbitration Act 1996
     statute
   • United Scientific Holdings Ltd v Burnley BC ([1978] AC 904)
     case
   • Bunge v Tradax ([1981] 1 WLR 711)
     case
   • The Spar Capella ([2016] 2 Lloyd's Rep 447)
     case
   • The Arctic ([2019] 2 Lloyd's Rep 603)
     case
   • Cehave NV v Bremer Handelsgesellschaft mbH ([1976] 1 QB 44)
     case
   • The Hansa Murcia ([2012] EWHC 3104 (Comm))
     case
   • Trans Trust SPRL v Danubian Trading Co Ltd ([1952] 2 QB 297)
     case
   • Classic Maritime v Lion Diversified Holdings ([2010] 1 Lloyd's Rep 59)
     case
   • South Oxfordshire DC v SITA ([2007] Env LR 13)
     case
   • Teekay Tankers v STX Offshore ([2018] 1 All ER 279)
     case
   • Harold Wood Brick Co v Ferris ([1935] 2 KB 198)
     case
   • Dolphin Tanker SRL v Westport Petroleum Inc (The Savina Caylyn) ([2011] 1 Lloyd's Rep 550)
     case
   • Geogas SA v Trammo Gas Ltd (The Baleares) ([1993] 1 Lloyd's Rep 215)
     case
   • STX Offshore v? ([2018] 1 All ER 279)
     case
   • March Engineering Limited v Emblem BV ([1990] WL 10622727)
     case
   • STC v Golodetz ([1989] 2 Lloyd's Law Reports 277)
     case
   • Universal Bulk v Andre et Cie ([2001] 2 Lloyd's Law Reports 65)
     case
   • Duffus v Societe Pour L'Exportation ([1985] 1 Lloyd's Rep 621)
     case
   • Stocznia v LATCO
     case
   • Barclay v Messenger ([1874] 43 LJ Ch 449)
     case
   • Ward v Feedex ([1985] 2 Lloyd's Rep 289)
     case
   • Msas Global Logistics v Power Packaging Inc
     case
   • Lila Lisbon ([2025] EWCA Civ 1210)
     case
   • Bentsen v Taylor
     case
   • ICS v West Bromwich Building Society ([1998] 1 WLR 896)
     case
   • Spar Shipping
     case