Omnibridge Consulting Ltd v Clearsprings (Management) Ltd

Omnibridge Consulting Ltd v Clearsprings (Management) Ltd

The arbitrator committed a serious irregularity under section 68(2)(a) of the Arbitration Act 1996 by deciding the bonus period contrary to the parties' common ground without notice or opportunity for submissions, causing substantial injustice to OCL. The appropriate remedy is to remit the relevant parts of the award to the arbitrator for reconsideration. CML's section 68 challenge to the bonus award is an impermissible attack on findings of fact and law, not a serious irregularity. CML's challenge to the counterclaim award is barred for failure to exhaust arbitral remedies under section 57.

Parties
Claimant/defendant: Omnibridge Consulting Limited; Defendant/claimant: Clearsprings (Management) Limited
Jurisdiction
England and Wales
Judgment Date
12 October 2004
Procedural Posture
Arbitration Challenge (commercial) / Judgment on Applications Under Sections 68 and 69 of the Arbitration Act 1996
Outcome
OCL's section 68 application allowed in part; award remitted to arbitrator for reconsideration of bonus period. OCL's section 69 application not determined. CML's section 68 applications dismissed.
Legal Topics
Serious Irregularity Under Arbitration Act 1996 S.68, Leave to Appeal Under Arbitration Act 1996 S.69, Interpretation of Contract Clauses, Remission of Arbitral Award, Exhaustion of Arbitral Remedies
Arbitration Commercial Law Contract Law Serious Irregularity Under Arbitration Act 1996 S.68 Leave to Appeal Under Arbitration Act 1996 S.69 Interpretation of Contract Clauses Remission of Arbitral Award Exhaustion of Arbitral Remedies

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Parties

Omnibridge Consulting Limited

Claimant/defendant

Clearsprings (Management) Limited

Defendant/claimant

Procedural Posture

Arbitration Challenge (commercial) / Judgment on Applications Under Sections 68 and 69 of the Arbitration Act 1996

Legal Issues

  1. 1 Whether the arbitrator committed a serious irregularity under section 68 of the Arbitration Act 1996 by deciding the bonus period contrary to the parties' common position without notice or opportunity to address the point
  2. 2 Whether substantial injustice resulted from the irregularity
  3. 3 Whether leave to appeal should be granted under section 69 of the Arbitration Act 1996

Ratio Decidendi

The arbitrator committed a serious irregularity under section 68(2)(a) of the Arbitration Act 1996 by deciding the bonus period contrary to the parties' common ground without notice or opportunity for submissions, causing substantial injustice to OCL. The appropriate remedy is to remit the relevant parts of the award to the arbitrator for reconsideration. CML's section 68 challenge to the bonus award is an impermissible attack on findings of fact and law, not a serious irregularity. CML's challenge to the counterclaim award is barred for failure to exhaust arbitral remedies under section 57.

Court Disposition

OCL's section 68 application allowed in part; award remitted to arbitrator for reconsideration of bonus period. OCL's section 69 application not determined. CML's section 68 applications dismissed.

Orders

  • Award remitted to arbitrator under section 68 for reconsideration of the bonus period and related reasoning in light of the parties' common ground and this judgment.
  • CML's section 68 applications in respect of the bonus award and counterclaim dismissed.