Ducat Maritime Ltd v Lavender Shipmanagement Incorporated [2022] EWHC 766 (Comm) (14 March 2022)

Ducat Maritime Ltd v Lavender Shipmanagement Incorporated [2022] EWHC 766 (Comm) (14 March 2022)

The arbitrator's failure to adhere to the common ground between the parties and to give them an opportunity to address the basis for his calculation constituted a serious irregularity under section 68(2)(a) of the Arbitration Act 1996, causing substantial injustice by inflating the award beyond what was due.

Source-derived case information.

Citation
[2022] EWHC 766 (Comm)
Parties
Claimant: Ducat Maritime Limited; Defendant: Lavender Shipmanagement Incorporated
Jurisdiction
England and Wales
Judgment Date
14 March 2022
Procedural Posture
Arbitration Claim Under Section 68 Arbitration Act 1996 / Judgment on Application to Set Aside Part of Arbitral Award
Outcome
Part of the arbitral award set aside
Legal Topics
Serious Irregularity Under Arbitration Act 1996 Section 68, Fair Hearing and Due Process in Arbitration, Correction of Arbitral Awards, Substantial Injustice, Accounting Errors in Arbitration Awards
Arbitration Commercial Law Serious Irregularity Under Arbitration Act 1996 Section 68 Fair Hearing and Due Process in Arbitration Correction of Arbitral Awards Substantial Injustice Accounting Errors in Arbitration Awards

Source-derived case record

Summary, issues, holding and outcome

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Parties

Ducat Maritime Limited

Claimant

Lavender Shipmanagement Incorporated

Defendant

Procedural Posture

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

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's accounting mistake caused substantial injustice to the applicant

Ratio Decidendi

The arbitrator's failure to adhere to the common ground between the parties and to give them an opportunity to address the basis for his calculation constituted a serious irregularity under section 68(2)(a) of the Arbitration Act 1996, causing substantial injustice by inflating the award beyond what was due.

Court Disposition

Part of the arbitral award set aside

Orders

  • The sum of US$9,553.92 is set aside from the arbitral award.