F Ltd. v M Ltd.

F Ltd. v M Ltd.

The court found a serious irregularity and substantial injustice in the tribunal's deduction of £973,344 from sums due to the claimant, as this was based on an unpleaded and unargued admission not advanced by either party. The issue was remitted to the tribunal for reconsideration. The claimant's other complaints regarding the three pump settlement and alternative contractual claims were rejected, as the tribunal's approach did not amount to serious irregularity or substantial injustice, and the claimant bore responsibility for not pleading alternative bases for recovery.

Parties
Claimant: F LTD; Defendant: M LTD
Jurisdiction
England and Wales
Judgment Date
11 February 2009
Procedural Posture
Arbitration Challenge (section 68 Arbitration Act 1996) / Judgment on Application to Remit Arbitral Award
Outcome
Partially allowed
Legal Topics
Serious Irregularity Under Section 68 Arbitration Act 1996, Remission of Arbitral Award, Consortium Agreements, Interpretation of Contractual Clauses, Costs of Arbitration

Case Brief

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Parties

F LTD

Claimant

M LTD

Defendant

Procedural Posture

Arbitration Challenge (section 68 Arbitration Act 1996) / Judgment on Application to Remit Arbitral Award

  1. 1 Whether the arbitral tribunal committed a serious irregularity under section 68 of the Arbitration Act 1996 by deciding points not argued or pleaded by the parties
  2. 2 Whether the deduction of £973,344 from sums due to the claimant was justified
  3. 3 Whether the claimant was deprived of the opportunity to argue alternative contractual bases for recovery

Ratio Decidendi

The court found a serious irregularity and substantial injustice in the tribunal's deduction of £973,344 from sums due to the claimant, as this was based on an unpleaded and unargued admission not advanced by either party. The issue was remitted to the tribunal for reconsideration. The claimant's other complaints regarding the three pump settlement and alternative contractual claims were rejected, as the tribunal's approach did not amount to serious irregularity or substantial injustice, and the claimant bore responsibility for not pleading alternative bases for recovery.

Court Disposition

Partially allowed

Orders

  • The issue of the deduction of £973,344 from sums due to the claimant is remitted to the arbitral tribunal for reconsideration.
  • The issue of costs is also remitted to the tribunal for reconsideration in light of the remission.