OAO Northern Shipping Company v Remolcadores De Marin SL (Remmar) [2007] EWHC 1821 (Comm) (26 July 2007)

OAO Northern Shipping Company v Remolcadores De Marin SL (Remmar) [2007] EWHC 1821 (Comm) (26 July 2007)

The tribunal committed a serious irregularity by deciding the case on the 'no representation' point without giving the Buyers an opportunity to address it, thereby breaching section 33 of the Arbitration Act 1996 and causing substantial injustice. The Buyers were deprived of the opportunity to advance a reasonably arguable case on an essential issue. The issue of quantum was also not properly addressed.

Citation
[2007] EWHC 1821 (Comm)
Parties
Claimant/buyers: OAO Northern Shipping Company; Respondent/sellers: Remolcadores de Marin SL
Jurisdiction
England and Wales
Judgment Date
26 July 2007
Procedural Posture
Application Under Arbitration Act 1996, Section 68 / High Court (commercial Court) Ruling on Application to Set Aside/remit Arbitral Award
Outcome
Award set aside and remitted for further consideration by the tribunal.
Legal Topics
Serious Irregularity in Arbitration, Natural Justice, Misrepresentation, Remission of Arbitral Award, Section 68 Arbitration Act 1996
Arbitration Commercial Law Serious Irregularity in Arbitration Natural Justice Misrepresentation Remission of Arbitral Award Section 68 Arbitration Act 1996

Case Brief

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Parties

OAO Northern Shipping Company

Claimant/buyers

Remolcadores de Marin SL

Respondent/sellers

Procedural Posture

Application Under Arbitration Act 1996, Section 68 / High Court (commercial Court) Ruling on Application to Set Aside/remit Arbitral Award

Legal Issues

  1. 1 Whether the arbitral tribunal committed a serious irregularity under section 68(2)(a) of the Arbitration Act 1996 by failing to give the Buyers an opportunity to address the 'no representation' point
  2. 2 Whether the irregularity caused substantial injustice to the Buyers
  3. 3 Whether the issue of quantum was properly addressed by the tribunal

Ratio Decidendi

The tribunal committed a serious irregularity by deciding the case on the 'no representation' point without giving the Buyers an opportunity to address it, thereby breaching section 33 of the Arbitration Act 1996 and causing substantial injustice. The Buyers were deprived of the opportunity to advance a reasonably arguable case on an essential issue. The issue of quantum was also not properly addressed.

Court Disposition

Award set aside and remitted for further consideration by the tribunal.

Orders

  • The arbitral award dated 18 October 2006 is set aside.
  • The matter is remitted to the tribunal for further consideration, including the issue of quantum.