The Secretary of State for the Home Department v Raytheon Systems Ltd

The Secretary of State for the Home Department v Raytheon Systems Ltd

Given the seriousness of the established irregularities, the passage of time since evidence was heard, the risk of lack of confidence in the tribunal's ability to reconsider the issues impartially, and the impracticality of remission, it would be inappropriate to remit the award. The entire arbitral award is set aside for resolution by a different tribunal. The Claimant, having been overall successful, is entitled to 80% of its costs, with an interim payment ordered.

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
Arbitration Challenge (section 68 Arbitration Act 1996) / Post Judgment Application on Remission or Setting Aside of Arbitral Award; Costs Determination
Outcome
Arbitral award set aside in total; costs awarded to Claimant
Legal Topics
Serious Irregularity in Arbitration, Remission Vs Setting Aside Arbitral Award, Costs Orders in Arbitration Challenges
Arbitration Civil Procedure Serious Irregularity in Arbitration Remission Vs Setting Aside Arbitral Award Costs Orders in Arbitration Challenges

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Parties

THE SECRETARY OF STATE FOR THE HOME DEPARTMENT

Claimant

RAYTHEON SYSTEMS LIMITED

Defendant

Procedural Posture

Arbitration Challenge (section 68 Arbitration Act 1996) / Post Judgment Application on Remission or Setting Aside of Arbitral Award; Costs Determination

Legal Issues

  1. 1 Whether the arbitral award should be remitted to the tribunal or set aside in whole under Section 68(3) Arbitration Act 1996 after findings of serious irregularity under Section 68(2)(d)
  2. 2 Appropriate costs order following successful challenge to arbitral award

Ratio Decidendi

Given the seriousness of the established irregularities, the passage of time since evidence was heard, the risk of lack of confidence in the tribunal's ability to reconsider the issues impartially, and the impracticality of remission, it would be inappropriate to remit the award. The entire arbitral award is set aside for resolution by a different tribunal. The Claimant, having been overall successful, is entitled to 80% of its costs, with an interim payment ordered.

Court Disposition

Arbitral award set aside in total; costs awarded to Claimant

Orders

  • The arbitral award is set aside for resolution by a different arbitral tribunal.
  • The Defendant shall pay 80% of the Claimant's costs of the proceedings, to be assessed on the standard basis.