ICT Pty Ltd v Sea Containers Ltd [2002] NSWSC 77

ICT Pty Ltd v Sea Containers Ltd [2002] NSWSC 77

The arbitrators' conduct in applying sustained pressure on the parties, especially the plaintiff, to agree to cancellation or commitment fees after hearing dates were set, constituted misconduct within s44(a) of the Act and created a reasonable apprehension of bias, justifying their removal as arbitrators.

Jurisdiction
Australia
Judgment Date
22 February 2002
Procedural Posture
Application Under Commercial Arbitration Act 1984 (nsw) / Interlocutory (application to Remove Arbitrators)
Outcome
Arbitrators removed; costs ordered to defendant
Legal Topics
['removal of Arbitrators' 'misconduct by Arbitrators' 'apprehension of Bias' "arbitrators' Fees" "court's Power Over Costs" 'appointment of New Arbitrators']
['arbitration' 'commercial Law'] ['removal of Arbitrators' 'misconduct by Arbitrators' 'apprehension of Bias' "arbitrators' Fees" "court's Power Over Costs" 'appointment of New Arbitrators']

Case Brief

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Procedural Posture

Application Under Commercial Arbitration Act 1984 (nsw) / Interlocutory (application to Remove Arbitrators)

Legal Issues

  1. 1 ["Whether arbitrators' conduct constituted misconduct or created a reasonable apprehension of bias under s44 of the Commercial Arbitration Act 1984 (NSW)" 'Whether pressure to agree to cancellation or commitment fees by arbitrators was improper' 'Whether the court should remove the arbitrators and make orders as to costs and future arbitration processes']

Ratio Decidendi

The arbitrators' conduct in applying sustained pressure on the parties, especially the plaintiff, to agree to cancellation or commitment fees after hearing dates were set, constituted misconduct within s44(a) of the Act and created a reasonable apprehension of bias, justifying their removal as arbitrators.

Court Disposition

Arbitrators removed; costs ordered to defendant

Orders

  • ['The Honourable Kenneth Carruthers QC, Mr Anthony de Fina, and Mr Michael Thompson are removed as arbitrators in relation to the references to arbitration under four specific shipbuilding contracts between the plaintiff and defendant.' "The defendant is to pay the plaintiff's costs of the application."]