Agrimex Ltd. v Tradigrain SA & Ors

Agrimex Ltd. v Tradigrain SA & Ors

The appointment of a legal draftsman was permissible in the special circumstances of this case, but the fee charged was grossly excessive and disproportionate to the sums and issues involved. The tribunal failed to exercise adequate scrutiny over the fee, and the time spent by the draftsman was unjustified. The fee for legal drafting is reduced to £5,000 as reasonable in the circumstances.

Parties
Claimant: AGRIMEX LTD; First Defendant: TRADIGRAIN SA; Second Defendant: THE GRAIN AND FEED TRADE ASSOCIATION; Third Defendant: RAINER KARSTAEDT; Fourth Defendant: BRIAN R. GILES; Fifth Defendant: SUSAN HUNT; Sixth Defendant: GRAHAM CLARK; Seventh Defendant: BARRY M. J. DUGGAN
Jurisdiction
England and Wales
Judgment Date
09 July 2003
Procedural Posture
Commercial Arbitration Related Application / Judgment After Application to Adjust Arbitral Tribunal Fees
Outcome
Application to adjust arbitral tribunal fees allowed in part; legal drafting fee reduced.
Legal Topics
Arbitral Tribunal Costs, Proportionality of Legal Fees, Appointment of Legal Draftsman, Duties of Arbitrators, Section 28 Arbitration Act 1996
Arbitration Commercial Law Arbitral Tribunal Costs Proportionality of Legal Fees Appointment of Legal Draftsman Duties of Arbitrators Section 28 Arbitration Act 1996

Case Brief

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Parties

AGRIMEX LTD

Claimant

TRADIGRAIN SA

First Defendant

THE GRAIN AND FEED TRADE ASSOCIATION

Second Defendant

RAINER KARSTAEDT

Third Defendant

BRIAN R. GILES

Fourth Defendant

SUSAN HUNT

Fifth Defendant

GRAHAM CLARK

Sixth Defendant

BARRY M. J. DUGGAN

Seventh Defendant

Procedural Posture

Commercial Arbitration Related Application / Judgment After Application to Adjust Arbitral Tribunal Fees

Legal Issues

  1. 1 Whether the fees charged by the Board of Appeal of GAFTA for legal drafting were excessive and disproportionate under s.28(2) and (3) of the Arbitration Act 1996
  2. 2 Whether the appointment of a legal draftsman was justified in the circumstances
  3. 3 Whether the tribunal exercised proper scrutiny over the fees charged

Ratio Decidendi

The appointment of a legal draftsman was permissible in the special circumstances of this case, but the fee charged was grossly excessive and disproportionate to the sums and issues involved. The tribunal failed to exercise adequate scrutiny over the fee, and the time spent by the draftsman was unjustified. The fee for legal drafting is reduced to £5,000 as reasonable in the circumstances.

Court Disposition

Application to adjust arbitral tribunal fees allowed in part; legal drafting fee reduced.

Orders

  • GAFTA to repay the amount by which the legal drafting fee exceeded £5,000 to the Claimant sellers.
  • Claimant sellers to pay the First Defendant’s costs of the s.68 proceedings, summarily assessed at £6,500.