Lesotho Highlands Development Authority v Impregilo Spa & Ors [2003] EWCA Civ 1159 (31 July 2003)

Lesotho Highlands Development Authority v Impregilo Spa & Ors [2003] EWCA Civ 1159 (31 July 2003)

The arbitrators exceeded their powers under section 68(2)(b) of the Arbitration Act 1996 by awarding sums in currencies and interest rates not stipulated in the contract, as both issues were governed by the substantive law of the contract (Lesotho law), not by the procedural law of the seat of arbitration. The parties' agreement on currency and interest was clear and binding, and the arbitrators had no discretion to depart from it.

Citation
[2003] EWCA Civ 1159
Parties
Claimant/respondent: Lesotho Highlands Development Authority; Defendant/appellant: Impregilo SPA and Others (Highlands Water Venture)
Jurisdiction
England and Wales
Judgment Date
31 July 2003
Procedural Posture
Appeal From Commercial Court (arbitration Award Challenge) / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Arbitrators' Powers, Currency of Award, Interest on Arbitral Awards, Excess of Powers Under Arbitration Act 1996, Applicable Law in Arbitration
Arbitration Contract Law Private International Law Arbitrators' Powers Currency of Award Interest on Arbitral Awards Excess of Powers Under Arbitration Act 1996 Applicable Law in Arbitration

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Parties

Lesotho Highlands Development Authority

Claimant/respondent

Impregilo SPA and Others (Highlands Water Venture)

Defendant/appellant

Procedural Posture

Appeal From Commercial Court (arbitration Award Challenge) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether arbitrators exceeded their powers by awarding sums in currencies and interest rates not stipulated in the contract
  2. 2 Whether the currency and interest issues are governed by the substantive law of the contract or by procedural law of the seat of arbitration

Ratio Decidendi

The arbitrators exceeded their powers under section 68(2)(b) of the Arbitration Act 1996 by awarding sums in currencies and interest rates not stipulated in the contract, as both issues were governed by the substantive law of the contract (Lesotho law), not by the procedural law of the seat of arbitration. The parties' agreement on currency and interest was clear and binding, and the arbitrators had no discretion to depart from it.

Court Disposition

Appeal dismissed

Orders

  • Matter of currency and interest remitted to the tribunal for reconsideration in accordance with the contract and the law of Lesotho
  • Costs (save counsels' fees) to be considered by the costs judge