BERNHARD SCHULTE G.M.B.H. & CO. K.G. AND OTHERS v. NILE HOLDINGS LTD.

[2004] 2 Lloyd's Rep. 352

QUEEN’S BENCH DIVISION (COMMERCIAL COURT)

Before Mr. Justice Cooke

Sale of ships - Contract for sale of fleet of L.P.G. carriers - Contract contained provision for purchasers to inspect vessels and within seven days after inspection to refer any complaints as to condition of ships to expert nominated by Chairman of Bureau Veritas for adjustment of purchase price - Purchasers made complaints about conditions of ships and made request to Chairman of Bureau Veritas within agreed time limit to nominate expert - Expert not nominated by Chairman of Bureau Veritas until after expiry of agreed time limit - Whether expert validly appointed - Construction of contract - Whether expert departed from his instructions - Whether expert has duty to comply with rules of natural justice - Whether expert’s determination can be resisted on ground of apparent bias - Whether purchasers in breach of duty of confidentiality and of good faith - Cross-applications for summary judgment.