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

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

The tribunal committed a serious irregularity under s.68(2)(d) Arbitration Act 1996 by failing to address (1) whether the process requirements for termination could be satisfied if all delay was caused by Raytheon, and (2) whether, in assessing unjust enrichment for transferred assets, costs attributable to Raytheon's own breaches should be excluded. These omissions caused substantial injustice as they were central issues with significant financial consequences.

Parties
Claimant: The Secretary of State for the Home Department; Defendant: Raytheon Systems Limited
Jurisdiction
England and Wales
Judgment Date
19 December 2014
Procedural Posture
Arbitration Challenge (section 68 Arbitration Act 1996) / Judgment on Application to Set Aside Arbitral Award
Outcome
Application allowed in part; two grounds of serious irregularity established, three grounds dismissed. Relief to be determined at a further hearing.
Legal Topics
Serious Irregularity Under Arbitration Act 1996 S.68, Contract Termination for Cause, Unjust Enrichment, Quantum Meruit, Construction of Contractual Conditions Precedent
Arbitration Commercial Law Contract Law Serious Irregularity Under Arbitration Act 1996 S.68 Contract Termination for Cause Unjust Enrichment Quantum Meruit Construction of Contractual Conditions Precedent

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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) / Judgment on Application to Set Aside Arbitral Award

Legal Issues

  1. 1 Whether the arbitral tribunal failed to deal with all issues put to it under s.68(2)(d) Arbitration Act 1996
  2. 2 Whether the tribunal failed to address the nature and seriousness of defaults by Raytheon Systems Limited
  3. 3 Whether the tribunal failed to address the impact of Raytheon's own breaches on the quantum of unjust enrichment claim (Claim A4)

Ratio Decidendi

The tribunal committed a serious irregularity under s.68(2)(d) Arbitration Act 1996 by failing to address (1) whether the process requirements for termination could be satisfied if all delay was caused by Raytheon, and (2) whether, in assessing unjust enrichment for transferred assets, costs attributable to Raytheon's own breaches should be excluded. These omissions caused substantial injustice as they were central issues with significant financial consequences.

Court Disposition

Application allowed in part; two grounds of serious irregularity established, three grounds dismissed. Relief to be determined at a further hearing.