Union Marine Classification Services LLC v The Government of the Union of Comoros & Anor

Union Marine Classification Services LLC v The Government of the Union of Comoros & Anor

The arbitrator had jurisdiction by ad hoc agreement to determine the issue of termination; there was no serious irregularity under s68 as there was evidence of non-payment and no unfairness or excess of powers; the damages claim could amount to acceptance of repudiatory breach; no substantial injustice was suffered; and there was no basis for removal of the arbitrator.

Parties
Applicant: Union Marine Classification Services LLC; First Respondent: The Government of the Union of Comoros; Second Respondent: Bruce Harris
Jurisdiction
England and Wales
Judgment Date
28 September 2017
Procedural Posture
Arbitration Claim (challenge to Arbitral Award) / Judgment on Application to Set Aside Arbitral Award and Remove Arbitrator
Outcome
Application dismissed
Legal Topics
Serious Irregularity Under Arbitration Act 1996 S68, Removal of Arbitrator Under Arbitration Act 1996 S24, Jurisdiction of Arbitrator, Issue Estoppel, Damages for Breach of Contract
Arbitration Commercial Law Serious Irregularity Under Arbitration Act 1996 S68 Removal of Arbitrator Under Arbitration Act 1996 S24 Jurisdiction of Arbitrator Issue Estoppel Damages for Breach of Contract

Case Brief

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Parties

Union Marine Classification Services LLC

Applicant

The Government of the Union of Comoros

First Respondent

Bruce Harris

Second Respondent

Procedural Posture

Arbitration Claim (challenge to Arbitral Award) / Judgment on Application to Set Aside Arbitral Award and Remove Arbitrator

Legal Issues

  1. 1 Whether the arbitrator had jurisdiction to determine the issue of termination of contract after the First Award
  2. 2 Whether there was a serious irregularity under s68 of the Arbitration Act 1996
  3. 3 Whether the arbitrator exceeded his powers or acted unfairly in finding non-payment by Union Marine

Ratio Decidendi

The arbitrator had jurisdiction by ad hoc agreement to determine the issue of termination; there was no serious irregularity under s68 as there was evidence of non-payment and no unfairness or excess of powers; the damages claim could amount to acceptance of repudiatory breach; no substantial injustice was suffered; and there was no basis for removal of the arbitrator.

Court Disposition

Application dismissed

Orders

  • Union Marine's challenge under s68 of the Arbitration Act 1996 is dismissed in its entirety.
  • Application for removal of the arbitrator under s24 of the Arbitration Act 1996 is refused.