K v A

K v A

The buyer's payment obligation under the contract required payment to the seller's bank for the account of the seller, with the correct account details as notified by the seller. The arbitral tribunal's reliance on clause 18 of GAFTA 119 without giving the parties an opportunity to address it constituted a serious irregularity under section 68 of the Arbitration Act 1996, warranting remission to the tribunal for reconsideration of that point. Other grounds of challenge were rejected as the tribunal had addressed the material arguments and made no error of law.

Parties
Claimant: K; Defendant: A
Jurisdiction
England and Wales
Judgment Date
03 May 2019
Procedural Posture
Arbitration Claim / Judgment on Challenge to Arbitration Award
Outcome
Partial remission; otherwise dismissed
Legal Topics
Payment Obligations, Bank Fraud, Agency, Arbitration Act 1996 Sections 67, 68, 69, GAFTA Contracts
Arbitration Commercial Law Payment Obligations Bank Fraud Agency Arbitration Act 1996 Sections 67, 68, 69 GAFTA Contracts

Case Brief

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Parties

K

Claimant

A

Defendant

Procedural Posture

Arbitration Claim / Judgment on Challenge to Arbitration Award

Legal Issues

  1. 1 What is the nature of the buyer's payment obligation under the contract?
  2. 2 Was there a serious irregularity under section 68 of the Arbitration Act 1996 due to reliance on clause 18 of GAFTA 119 without giving the parties an opportunity to address it?
  3. 3 Did the arbitral tribunal fail to address material arguments advanced by the claimant?

Ratio Decidendi

The buyer's payment obligation under the contract required payment to the seller's bank for the account of the seller, with the correct account details as notified by the seller. The arbitral tribunal's reliance on clause 18 of GAFTA 119 without giving the parties an opportunity to address it constituted a serious irregularity under section 68 of the Arbitration Act 1996, warranting remission to the tribunal for reconsideration of that point. Other grounds of challenge were rejected as the tribunal had addressed the material arguments and made no error of law.

Court Disposition

Partial remission; otherwise dismissed

Orders

  • Remitted to the GAFTA Board of Appeal to reconsider reliance on clause 18 of GAFTA 119 with submissions from the parties
  • All other applications dismissed