RJ & Anor v HB

RJ & Anor v HB

The arbitrator granted relief (Award #3) on a basis not sought by either party and not raised with them, depriving both sides of a fair opportunity to address it. This was a serious irregularity under s.68(2) Arbitration Act 1996, causing substantial injustice to RJ and L Ltd. The irregularity affected Award #3, related reasoning, and consequential orders. Given the nature and extent of the irregularity and the overlay of reasoning in the addenda, remission was inappropriate; the affected parts of the award must be set aside. There was no basis for removing the arbitrator.

Parties
Claimant: RJ; Claimant: L Ltd; Defendant: HB
Jurisdiction
England and Wales
Judgment Date
26 October 2018
Procedural Posture
Arbitration Challenge (s.68 Arbitration Act 1996) / Judgment on Application to Set Aside Arbitral Award
Outcome
Claim allowed in part; Award #3 and affected reasoning set aside; arbitrator not removed.
Legal Topics
Serious Irregularity in Arbitration, Setting Aside Arbitral Award, Remission Vs Setting Aside, Removal of Arbitrator, Procedural Fairness, Declaratory Relief
Arbitration Commercial Law Serious Irregularity in Arbitration Setting Aside Arbitral Award Remission Vs Setting Aside Removal of Arbitrator Procedural Fairness Declaratory Relief

Case Brief

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Parties

RJ

Claimant

L Ltd

Claimant

HB

Defendant

Procedural Posture

Arbitration Challenge (s.68 Arbitration Act 1996) / Judgment on Application to Set Aside Arbitral Award

Legal Issues

  1. 1 Whether the arbitral award (Award #3) was affected by serious irregularity under s.68 Arbitration Act 1996
  2. 2 Whether the irregularity caused substantial injustice
  3. 3 Whether the affected parts of the award should be set aside or remitted

Ratio Decidendi

The arbitrator granted relief (Award #3) on a basis not sought by either party and not raised with them, depriving both sides of a fair opportunity to address it. This was a serious irregularity under s.68(2) Arbitration Act 1996, causing substantial injustice to RJ and L Ltd. The irregularity affected Award #3, related reasoning, and consequential orders. Given the nature and extent of the irregularity and the overlay of reasoning in the addenda, remission was inappropriate; the affected parts of the award must be set aside. There was no basis for removing the arbitrator.

Court Disposition

Claim allowed in part; Award #3 and affected reasoning set aside; arbitrator not removed.

Orders

  • Award #3 and affected parts of the Final Award and Addenda set aside
  • Arbitrator to reconsider the matter afresh, subject to further order