William Hare UAE LLC v Aircraft Support Industries Pty Ltd [2014] NSWSC 1403

William Hare UAE LLC v Aircraft Support Industries Pty Ltd [2014] NSWSC 1403

The tribunal breached the rules of natural justice by awarding US $50,000 where, after omission of that claim from the Statement of Claim and the absence of submissions maintaining it, the claim ought reasonably to have been treated as no longer pressed; fairness required the tribunal to notify the parties and invite submissions before awarding that amount. The other alleged breaches were not established because the tribunal considered the key arguments, gave adequate reasons, and afforded the defendant a fair opportunity to present its case. The affected US $50,000 component and the attributable interest were severable from the balance of the award, so enforcement was refused only to...

Jurisdiction
Australia
Judgment Date
14 October 2014
Procedural Posture
Application Under S 8(2) of the International Arbitration Act 1974 (cth) for Enforcement of a Foreign Arbitral Award / Principal Judgment
Outcome
Foreign arbitral award partially enforced after severance of the US $50,000 component and attributable interest; judgment entered for the plaintiff against the defendant.
Legal Topics
['enforcement of Foreign Arbitral Award' 'public Policy' 'natural Justice' 'severance' 'partial Enforcement of Award' 'international Arbitration Act 1974 (cth) S 8']
['international Commercial Arbitration' 'civil Procedure'] ['enforcement of Foreign Arbitral Award' 'public Policy' 'natural Justice' 'severance' 'partial Enforcement of Award' 'international Arbitration Act 1974 (cth) S 8']

Case Brief

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Procedural Posture

Application Under S 8(2) of the International Arbitration Act 1974 (cth) for Enforcement of a Foreign Arbitral Award / Principal Judgment

Legal Issues

  1. 1 ['Whether enforcement of the foreign arbitral award should be refused as contrary to public policy because a breach of the rules of natural justice occurred in connection with the making of the award.' 'Whether the arbitral tribunal denied natural justice by awarding US $50,000 when that claim was not included in the Statement of Claim and was treated as no longer pressed.' "Whether the tribunal failed to consider or give adequate reasons concerning the defendant's contention that the 10 May 2011 letter had to be a permitted variation of the subcontract to be enforceable." "Whether the tribunal's refusal to allow the defendant to rely on supplementary defences involved a denial of natural justice." "Whether alleged failures to give reasons in respect of the defendant's defences amounted to a breach of natural justice." 'Whether the part of the award affected by breach of natural justice could be severed so that the balance of the award could be enforced.']

Ratio Decidendi

The tribunal breached the rules of natural justice by awarding US $50,000 where, after omission of that claim from the Statement of Claim and the absence of submissions maintaining it, the claim ought reasonably to have been treated as no longer pressed; fairness required the tribunal to notify the parties and invite submissions before awarding that amount. The other alleged breaches were not established because the tribunal considered the key arguments, gave adequate reasons, and afforded the defendant a fair opportunity to present its case. The affected US $50,000 component and the attributable interest were severable from the balance of the award, so enforcement was refused only to...

Court Disposition

Foreign arbitral award partially enforced after severance of the US $50,000 component and attributable interest; judgment entered for the plaintiff against the defendant.

Orders

  • ['Order that judgment be entered for the plaintiff against the defendant in the sum of US $1,481,678.42.' 'Order that interest is payable at the rate of 9% per annum on so much of the judgment sum as is from time to time unpaid.' "Order that the defendant pay the plaintiff's costs of the proceedings."]