DUCAT MARITIME LIMITED v LAVENDER SHIPMANAGEMENT INCORPORATED

DUCAT MARITIME LIMITED v LAVENDER SHIPMANAGEMENT INCORPORATED

The arbitrator committed a serious irregularity under section 68(2)(a) by departing from the parties’ common ground and deciding the award on a basis not argued by either party, without giving them an opportunity to comment, resulting in substantial injustice to the Charterers, who were ordered to pay more than was due.

Parties
Claimant: Ducat Maritime Limited; Defendant: Lavender Shipmanagement Incorporated
Jurisdiction
England and Wales
Judgment Date
14 March 2022
Procedural Posture
Arbitration Challenge / Judgment on Application to Set Aside Part of Arbitral Award Under Section 68 of the Arbitration Act 1996
Outcome
Application allowed in part; part of the arbitral award set aside.
Legal Topics
Serious Irregularity in Arbitration, Section 68 Arbitration Act 1996, Section 33 Arbitration Act 1996, Due Process in Arbitration, Correction of Arbitral Awards, Substantial Injustice
Arbitration Commercial Law Serious Irregularity in Arbitration Section 68 Arbitration Act 1996 Section 33 Arbitration Act 1996 Due Process in Arbitration Correction of Arbitral Awards Substantial Injustice

Case Brief

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Parties

Ducat Maritime Limited

Claimant

Lavender Shipmanagement Incorporated

Defendant

Procedural Posture

Arbitration Challenge / Judgment on Application to Set Aside Part of Arbitral Award Under Section 68 of the Arbitration Act 1996

Legal Issues

  1. 1 Whether the arbitrator committed a serious irregularity under section 68(2)(a) of the Arbitration Act 1996 by failing to comply with section 33 (general duty of tribunal)
  2. 2 Whether the arbitrator made an obvious accounting mistake constituting a serious irregularity
  3. 3 Whether the irregularity caused substantial injustice to the applicant

Ratio Decidendi

The arbitrator committed a serious irregularity under section 68(2)(a) by departing from the parties’ common ground and deciding the award on a basis not argued by either party, without giving them an opportunity to comment, resulting in substantial injustice to the Charterers, who were ordered to pay more than was due.

Court Disposition

Application allowed in part; part of the arbitral award set aside.

Orders

  • Set aside part of the award, namely the sum of US$9,553.92.