The Secretary of State for the Home Department v Raytheon Systems Ltd [2015] EWHC 311 (TCC) (17 February 2015)

The Secretary of State for the Home Department v Raytheon Systems Ltd [2015] EWHC 311 (TCC) (17 February 2015)

The award was set aside in its entirety because the tribunal's failure to address critical issues of delay responsibility and quantum constituted serious irregularity causing substantial injustice, and it would be inappropriate to remit due to the risk of subconscious bias, passage of time, and lack of confidence in the tribunal's ability to reconsider impartially.

Citation
[2015] EWHC 311 (TCC)
Parties
Claimant: The Secretary of State for the Home Department; Defendant: Raytheon Systems Limited
Jurisdiction
England and Wales
Judgment Date
17 February 2015
Procedural Posture
Application Under Section 68(2)(d) Arbitration Act 1996 / Post Judgment, Consequential Hearing on Remission or Setting Aside, Costs
Outcome
Award set aside in total; matter to be resolved by a different arbitral tribunal.
Legal Topics
Serious Irregularity, Remission Vs Setting Aside Arbitral Award, Costs in Arbitration Challenges
Arbitration Commercial Law Serious Irregularity Remission Vs Setting Aside Arbitral Award Costs in Arbitration Challenges

Case Brief

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Parties

The Secretary of State for the Home Department

Claimant

Raytheon Systems Limited

Defendant

Procedural Posture

Application Under Section 68(2)(d) Arbitration Act 1996 / Post Judgment, Consequential Hearing on Remission or Setting Aside, Costs

Legal Issues

  1. 1 Whether the arbitral award should be remitted or set aside due to serious irregularity under Section 68(2)(d) Arbitration Act 1996
  2. 2 Appropriateness of remission versus setting aside
  3. 3 Costs disposition following successful challenge

Ratio Decidendi

The award was set aside in its entirety because the tribunal's failure to address critical issues of delay responsibility and quantum constituted serious irregularity causing substantial injustice, and it would be inappropriate to remit due to the risk of subconscious bias, passage of time, and lack of confidence in the tribunal's ability to reconsider impartially.

Court Disposition

Award set aside in total; matter to be resolved by a different arbitral tribunal.

Orders

  • Raytheon Systems Limited to pay 80% of The Secretary of State for the Home Department's costs, assessed on the standard basis.
  • Raytheon Systems Limited to pay £146,000 as interim payment on account of costs.