Metropolitan Property Realizations Ltd v Atmore Investments Ltd

Metropolitan Property Realizations Ltd v Atmore Investments Ltd

The arbitrator failed to include a profit element for the notional tenant in the calculation of fair yearly rent, which was essential to the commercial logic of the award; this constituted a serious irregularity under section 68(2)(d) of the Arbitration Act 1996 and caused substantial injustice to the claimant.

Source-derived case information.

Parties
Claimant: Metropolitan Property Realizations Limited; Defendant: Atmore Investments Limited
Jurisdiction
England and Wales
Judgment Date
28 November 2008
Procedural Posture
Application Under Section 68 of the Arbitration Act 1996 / Judgment on Application to Remit Arbitral Award
Outcome
Claim under section 68(2)(d) succeeds; award remitted to arbitrator.
Legal Topics
Serious Irregularity Under Arbitration Act 1996, Rent Review Clause, Remission of Arbitral Award
Arbitration Property Law Serious Irregularity Under Arbitration Act 1996 Rent Review Clause Remission of Arbitral Award

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Parties

Metropolitan Property Realizations Limited

Claimant

Atmore Investments Limited

Defendant

Procedural Posture

Application Under Section 68 of the Arbitration Act 1996 / Judgment on Application to Remit Arbitral Award

Legal Issues

  1. 1 Whether the arbitral award failed to include a profit element for the notional tenant in calculating fair yearly rent
  2. 2 Whether such failure constitutes a serious irregularity under section 68(2)(d) of the Arbitration Act 1996

Ratio Decidendi

The arbitrator failed to include a profit element for the notional tenant in the calculation of fair yearly rent, which was essential to the commercial logic of the award; this constituted a serious irregularity under section 68(2)(d) of the Arbitration Act 1996 and caused substantial injustice to the claimant.

Court Disposition

Claim under section 68(2)(d) succeeds; award remitted to arbitrator.

Orders

  • Remission to the arbitrator for re-determination limited to the appropriate element of profit for a notional tenant to be included in the calculation of fair yearly rent.