Merthyr (South Wales) Ltd v Cwmbargoed Estates Ltd & Anor [2019] EWHC 704 (Ch) (25 March 2019)

Merthyr (South Wales) Ltd v Cwmbargoed Estates Ltd & Anor [2019] EWHC 704 (Ch) (25 March 2019)

The claimant failed to demonstrate that the arbitrator's award was 'obviously wrong' on its face; the construction of the lease adopted by the arbitrator was within the range of reasonable interpretations and did not meet the high threshold for leave to appeal under s.69 Arbitration Act 1996. The application was therefore refused.

Citation
[2019] EWHC 704 (Ch)
Parties
Claimant: Merthyr (South Wales) Ltd; Defendant: Cwmbargoed Estates Ltd; Defendant: Dowlais Top Investment Company Ltd
Jurisdiction
England and Wales
Judgment Date
25 March 2019
Procedural Posture
Application Under Arbitration Act 1996 S.69 for Permission to Appeal Arbitration Award / Judgment on Application for Leave to Appeal (on Papers, Without Hearing)
Outcome
Application for leave to appeal refused.
Legal Topics
Arbitration Appeals, Interpretation of Leases, Production Related Rent, Permission to Appeal Arbitration Award, Contractual Construction
Arbitration Commercial Law Property Law Arbitration Appeals Interpretation of Leases Production Related Rent Permission to Appeal Arbitration Award Contractual Construction

Case Brief

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Parties

Merthyr (South Wales) Ltd

Claimant

Cwmbargoed Estates Ltd

Defendant

Dowlais Top Investment Company Ltd

Defendant

Procedural Posture

Application Under Arbitration Act 1996 S.69 for Permission to Appeal Arbitration Award / Judgment on Application for Leave to Appeal (on Papers, Without Hearing)

Legal Issues

  1. 1 Whether the arbitration award on the calculation of Production Related Rent (PRR) under a lease was 'obviously wrong' in law so as to justify leave to appeal under s.69 Arbitration Act 1996
  2. 2 Proper construction of 'Average Ex Site Coal Price' and 'Ex Site' in the lease
  3. 3 Whether the arbitrator's non-lawyer status affected the correctness of the award

Ratio Decidendi

The claimant failed to demonstrate that the arbitrator's award was 'obviously wrong' on its face; the construction of the lease adopted by the arbitrator was within the range of reasonable interpretations and did not meet the high threshold for leave to appeal under s.69 Arbitration Act 1996. The application was therefore refused.

Court Disposition

Application for leave to appeal refused.

Orders

  • Application for leave to appeal under s.69 Arbitration Act 1996 is refused.
  • Section 68 application (serious irregularity) to be listed for hearing as soon as possible with a four-hour time estimate.