Incorporation of charter party arbitration clauses in bills of lading can bind disputes and require arbitration despite limitation objections.

Bills of lading incorporating a charter party can make the charter party's arbitration clause binding where the incorporation clause shows the parties' intention to adopt it. The Court rejected objections that the charter party was not separately identified and that alleged defects in the bills of lading prevented incorporation. Although limitation concerns were raised, binding precedent required reference of the dispute to arbitration, and the Court directed safeguards so the reference would not be rendered futile in the arbitral proceedings.

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Issues: Whether the disputes arising out of the bills of lading were covered by the arbitration clause contained in the charter party and, if so, whether the suit had to be referred to arbitration despite the objection based on limitation.

Analysis: The bills of lading incorporated the charter party, and the arbitration clause in the charter party was therefore treated as part of the contractual matrix governing the bills of lading. The Court relied on binding precedent holding that the decisive question is the intention of the parties as expressed in the bill of lading and its incorporation clause, and that once such incorporation is established, the arbitration clause becomes binding. The objection that the charter party was not separately identified and the further objections based on alleged defects in the bills of lading were rejected. On limitation, the Court held that although the Hague Rules issue raised a serious concern, the binding precedent compelled reference to arbitration, and protection had to be fashioned so that the reference did not become futile.

Conclusion: The disputes were held referable to arbitration, and the suit was ordered to be stayed, with safeguards directed to protect the claimant against a limitation objection in the arbitral proceedings.

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