Tame Shipping Ltd v Easy Navigation Ltd [2004] EWHC 1862 (Comm) (28 July 2004)

Tame Shipping Ltd v Easy Navigation Ltd [2004] EWHC 1862 (Comm) (28 July 2004)

The court held that while the parties were contractually bound not to use the arbitrator's confidential reasons, the court itself was not so bound and could admit such reasons in evidence if necessary to determine whether there had been a serious irregularity causing substantial injustice. However, on the facts, there was no serious irregularity in the arbitral process, as the arbitrator's reasoning was based on the construction of the contract and the Buyers' failure to comply with the requirements of clause 19, and there was no evidence that the arbitrator ignored relevant evidence or denied the Buyers a fair opportunity to present their case.

Citation
[2004] EWHC 1862 (Comm)
Parties
Claimant: Tame Shipping Ltd; Defendant: Easy Navigation Ltd
Jurisdiction
England and Wales
Judgment Date
28 July 2004
Procedural Posture
Commercial Arbitration Challenge / Judgment on Application Under Section 68 of the Arbitration Act 1996
Outcome
Application dismissed
Legal Topics
Confidentiality of Arbitrator's Reasons, Serious Irregularity Under Arbitration Act 1996 S.68, Finality of Arbitration Awards, Interpretation of Sale of Ship Contracts
Arbitration Commercial Law Shipping Law Confidentiality of Arbitrator's Reasons Serious Irregularity Under Arbitration Act 1996 S.68 Finality of Arbitration Awards Interpretation of Sale of Ship Contracts

Case Brief

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Parties

Tame Shipping Ltd

Claimant

Easy Navigation Ltd

Defendant

Procedural Posture

Commercial Arbitration Challenge / Judgment on Application Under Section 68 of the Arbitration Act 1996

Legal Issues

  1. 1 Whether parties may rely on confidential arbitrator's reasons in support of an application under section 68 of the Arbitration Act 1996
  2. 2 Whether there was a serious irregularity in the arbitral process causing substantial injustice

Ratio Decidendi

The court held that while the parties were contractually bound not to use the arbitrator's confidential reasons, the court itself was not so bound and could admit such reasons in evidence if necessary to determine whether there had been a serious irregularity causing substantial injustice. However, on the facts, there was no serious irregularity in the arbitral process, as the arbitrator's reasoning was based on the construction of the contract and the Buyers' failure to comply with the requirements of clause 19, and there was no evidence that the arbitrator ignored relevant evidence or denied the Buyers a fair opportunity to present their case.

Court Disposition

Application dismissed

Orders

  • Application under section 68 of the Arbitration Act 1996 dismissed