Cameroon Airlines v Transnet Ltd.

Cameroon Airlines v Transnet Ltd.

The tribunal committed a serious irregularity under Section 68(2)(a) by deciding the quantification of value based on a method not argued by either party and without giving Camair a fair opportunity to address this approach, thereby causing a real risk of substantial injustice. The issue of commission did not amount to a serious irregularity as Camair had sufficient opportunity to address it.

Parties
Claimant: Cameroon Airlines; Defendant: Transnet Limited
Jurisdiction
England and Wales
Judgment Date
29 July 2004
Procedural Posture
Commercial Arbitration Challenge / Judgment on Application to Set Aside Arbitral Award Under Section 68 Arbitration Act 1996
Outcome
Award partially set aside and remitted to the tribunal for reconsideration on quantification of value; application otherwise dismissed.
Legal Topics
Serious Irregularity Under Section 68 Arbitration Act 1996, Procedural Fairness in Arbitration, Restitution for Contracts Tainted by Bribery, Unjust Enrichment, Remission of Arbitral Award
Arbitration Commercial Law Serious Irregularity Under Section 68 Arbitration Act 1996 Procedural Fairness in Arbitration Restitution for Contracts Tainted by Bribery Unjust Enrichment Remission of Arbitral Award

Case Brief

Summary, issues, holding and outcome

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Parties

Cameroon Airlines

Claimant

Transnet Limited

Defendant

Procedural Posture

Commercial Arbitration Challenge / Judgment on Application to Set Aside Arbitral Award Under Section 68 Arbitration Act 1996

Legal Issues

  1. 1 Whether the arbitral tribunal committed a serious irregularity under Section 68 Arbitration Act 1996 by deciding the quantification issue on a basis not argued by the parties
  2. 2 Whether the tribunal failed to act fairly and give the parties a reasonable opportunity to address the approach to quantification of value under the maintenance contracts
  3. 3 Whether the tribunal's approach to the amount of commission constituted a serious irregularity

Ratio Decidendi

The tribunal committed a serious irregularity under Section 68(2)(a) by deciding the quantification of value based on a method not argued by either party and without giving Camair a fair opportunity to address this approach, thereby causing a real risk of substantial injustice. The issue of commission did not amount to a serious irregularity as Camair had sufficient opportunity to address it.

Court Disposition

Award partially set aside and remitted to the tribunal for reconsideration on quantification of value; application otherwise dismissed.

Orders

  • The award is remitted to the arbitral tribunal for reconsideration on the issue of quantification of the value of the services under the maintenance contracts.
  • No remission or setting aside in respect of the commission amount.