St George's Investment Company v Gemini Consulting Ltd

St George's Investment Company v Gemini Consulting Ltd

The arbitrator committed a serious irregularity by applying discounts for onerous lease terms within the Third Floor Discount Method, a basis not argued by either party and contrary to their common approach. This deprived the claimant of an opportunity to address the issue, resulting in substantial injustice. The award must be remitted for reconsideration.

Parties
Claimant: St George’s Investment Company; Defendant: Gemini Consulting Limited
Jurisdiction
England and Wales
Judgment Date
08 October 2004
Procedural Posture
Arbitration Challenge (remission of Award) / Judgment on Application to Remit Arbitration Award Under S.68 Arbitration Act 1996
Outcome
Award remitted to arbitrator for reconsideration
Legal Topics
Serious Irregularity Under S.68 Arbitration Act 1996, Rent Review, Arbitrator's Duty to Act Fairly, Remission of Award, Double Counting in Valuation
Arbitration Landlord and Tenant Commercial Law Serious Irregularity Under S.68 Arbitration Act 1996 Rent Review Arbitrator's Duty to Act Fairly Remission of Award Double Counting in Valuation

Case Brief

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Parties

St George’s Investment Company

Claimant

Gemini Consulting Limited

Defendant

Procedural Posture

Arbitration Challenge (remission of Award) / Judgment on Application to Remit Arbitration Award Under S.68 Arbitration Act 1996

Legal Issues

  1. 1 Whether the arbitrator committed a serious irregularity under s.68 Arbitration Act 1996 by applying discounts not argued by the parties
  2. 2 Whether the arbitrator's methodology caused substantial injustice to the claimant

Ratio Decidendi

The arbitrator committed a serious irregularity by applying discounts for onerous lease terms within the Third Floor Discount Method, a basis not argued by either party and contrary to their common approach. This deprived the claimant of an opportunity to address the issue, resulting in substantial injustice. The award must be remitted for reconsideration.

Court Disposition

Award remitted to arbitrator for reconsideration

Orders

  • The arbitration award dated 1 October 2003 is remitted in whole to the arbitrator for reconsideration under s.68 Arbitration Act 1996