Vogelaar v. Callaghan [1998] IESC 9 (13th July, 1998)

Vogelaar v. Callaghan [1998] IESC 9 (13th July, 1998)

The arbitrator erred in law by failing to properly apply the principle that costs should follow the event where an open offer exceeded the award, and by not exercising his discretion in accordance with the High Court's findings. The High Court was correct to set aside the part of the award requiring the owners to pay 9/15 of the builder's costs.

Citation
[1998] IESC 9
Parties
Plaintiff: S. Vogelaar & Anor.; Defendant: D. Callaghan
Jurisdiction
Ireland
Procedural Posture
Appeal / Supreme Court Judgment on Appeal From High Court
Outcome
Appeal dismissed; High Court order affirmed with variation
Legal Topics
Costs in Arbitration, Effect of Open Offer on Costs, Judicial Review of Arbitral Awards
Arbitration Civil Procedure Contract Law Costs in Arbitration Effect of Open Offer on Costs Judicial Review of Arbitral Awards

Case Brief

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Parties

S. Vogelaar & Anor.

Plaintiff

D. Callaghan

Defendant

Procedural Posture

Appeal / Supreme Court Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the arbitrator erred in awarding costs to the builder despite an open offer exceeding the award
  2. 2 Whether the High Court was correct in setting aside part of the arbitrator's award as to costs

Ratio Decidendi

The arbitrator erred in law by failing to properly apply the principle that costs should follow the event where an open offer exceeded the award, and by not exercising his discretion in accordance with the High Court's findings. The High Court was correct to set aside the part of the award requiring the owners to pay 9/15 of the builder's costs.

Court Disposition

Appeal dismissed; High Court order affirmed with variation

Orders

  • Set aside so much of the arbitrator's award as required the owners to pay 9/15 of the builder's costs.
  • Affirmed the High Court order enforcing the award for the owners to recover 6/15 of their costs.