L v R [2012] EWHC 2894 (Comm) (24 October 2012)

L v R [2012] EWHC 2894 (Comm) (24 October 2012)

There was no agreement or mutual understanding that the award would be declaratory only, nor was this reasonably apparent to the tribunal. The tribunal's decision to make a money award was not a serious irregularity. Even if there was an irregularity, L failed to show substantial injustice as it did not establish that the Ormos Claim was reasonably arguable. The tribunal's prohibition on advancing set-offs was not a serious irregularity and caused no substantial injustice as all claims had been finally determined.

Citation
[2012] EWHC 2894 (Comm)
Parties
Claimant: L; Defendant: R
Jurisdiction
England and Wales
Judgment Date
24 October 2012
Procedural Posture
Section 68 Arbitration Act 1996 Challenge / High Court Judgment on Application to Set Aside Arbitration Award
Outcome
Application dismissed
Legal Topics
Serious Irregularity Under Arbitration Act 1996 S.68, Insolvency Set Off, Declaratory Vs. Money Award, Jurisdiction of Arbitral Tribunal, Substantial Injustice Threshold
Arbitration Commercial Law Insolvency Serious Irregularity Under Arbitration Act 1996 S.68 Insolvency Set Off Declaratory Vs. Money Award Jurisdiction of Arbitral Tribunal Substantial Injustice Threshold

Case Brief

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Parties

L

Claimant

R

Defendant

Procedural Posture

Section 68 Arbitration Act 1996 Challenge / High Court Judgment on Application to Set Aside Arbitration Award

Legal Issues

  1. 1 Whether the arbitral tribunal committed a serious irregularity by making a money award instead of a declaratory award contrary to parties' agreement or expectation
  2. 2 Whether the tribunal's prohibition on advancing set-offs constituted a serious irregularity
  3. 3 Whether any irregularity caused substantial injustice to the applicant

Ratio Decidendi

There was no agreement or mutual understanding that the award would be declaratory only, nor was this reasonably apparent to the tribunal. The tribunal's decision to make a money award was not a serious irregularity. Even if there was an irregularity, L failed to show substantial injustice as it did not establish that the Ormos Claim was reasonably arguable. The tribunal's prohibition on advancing set-offs was not a serious irregularity and caused no substantial injustice as all claims had been finally determined.

Court Disposition

Application dismissed