Van Der Giessen-De-Noord Shipbuiilding Division BV v Imtech Marine & Offshore BV

Van Der Giessen-De-Noord Shipbuiilding Division BV v Imtech Marine & Offshore BV

The tribunal committed serious irregularity by failing to address the waiver/estoppel defence, the agreed variation procedure, and by double-counting sums for additional works, and by awarding interest at 10% without giving the parties an opportunity to address the appropriateness of that rate. These failures caused substantial injustice to GN. The appropriate remedy is to set aside the affected parts of the award and require reconsideration by the tribunal with an umpire present.

Parties
Claimant/respondent in Arbitration: Van der Giessen-de-Noord Shipbuilding Division B.V.; Defendant/claimant in Arbitration: Imtech Marine & Offshore B.V.
Jurisdiction
England and Wales
Judgment Date
26 November 2008
Procedural Posture
Arbitration Challenge (section 68 Arbitration Act 1996) / Judgment on Application to Set Aside/remit Arbitral Award
Outcome
Award set aside in part and remitted for reconsideration with an umpire; directions for further submissions/orders reserved.
Legal Topics
Serious Irregularity (section 68 Arbitration Act 1996), Waiver/estoppel, Variation Procedure in Contracts, Interest Awards, Double Recovery/double Counting, Scope of Work Disputes
Arbitration Commercial Law Contract Law Serious Irregularity (section 68 Arbitration Act 1996) Waiver/estoppel Variation Procedure in Contracts Interest Awards Double Recovery/double Counting +1 more

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Parties

Van der Giessen-de-Noord Shipbuilding Division B.V.

Claimant/respondent in Arbitration

Imtech Marine & Offshore B.V.

Defendant/claimant in Arbitration

Procedural Posture

Arbitration Challenge (section 68 Arbitration Act 1996) / Judgment on Application to Set Aside/remit Arbitral Award

Legal Issues

  1. 1 Whether the arbitral tribunal committed serious irregularity under section 68 of the Arbitration Act 1996 by failing to address essential issues and defences
  2. 2 Whether the tribunal failed to deal with the waiver/estoppel defence
  3. 3 Whether the tribunal failed to address the agreed variation procedure and its impact

Ratio Decidendi

The tribunal committed serious irregularity by failing to address the waiver/estoppel defence, the agreed variation procedure, and by double-counting sums for additional works, and by awarding interest at 10% without giving the parties an opportunity to address the appropriateness of that rate. These failures caused substantial injustice to GN. The appropriate remedy is to set aside the affected parts of the award and require reconsideration by the tribunal with an umpire present.

Court Disposition

Award set aside in part and remitted for reconsideration with an umpire; directions for further submissions/orders reserved.

Orders

  • Paragraphs 21–23 (HVAC Variation Claim No 1), including the award of €1,347,960, set aside
  • Paragraphs 55–59 (Additional Work/Increased Scope of Work), including the award of €1,000,000, set aside