[2009] KEHC 2198 (KLR)

[2009] KEHC 2198 (KLR)

The court found that the application to set aside the arbitral award was filed within the statutory period, as the award was only published and received by the parties in August 2008. The arbitrator, having found in favour of the applicant, erred in failing to award costs of the arbitration and interest at commercial rates as contemplated by the sub-contract agreement. The arbitrator's refusal to award costs and commercial interest was outside the scope of the reference and contrary to the terms of the contract. The court set aside those parts of the award and substituted them with an order that the applicant is entitled to costs of the arbitration and interest at the commercial rate of...

Citation
[2009] KEHC 2198 (KLR)
Parties
Applicant: Dewdrop Enterprises Ltd; Respondent: Harree Construction Ltd
Court
High Court
Court Station
High Court at Nairobi (Milimani Commercial Courts)
Jurisdiction
Kenya
Judgment Date
3 July 2009
Case Number
Miscellaneous Civil Application 684 of 2008
Procedural Posture
Miscellaneous Application / Ruling on Application to Set Aside Arbitral Award
Outcome
Application to set aside part of the arbitral award substantially succeeds.
Judges
LK Kimaru
Legal Topics
Arbitration Awards, Setting Aside Award, Construction Contracts, Interest on Awards, Costs of Arbitration
Source Language
English
Commercial and Corporate Alternative Dispute Resolution Arbitration Awards Setting Aside Award Construction Contracts Interest on Awards Costs of Arbitration

Case Brief

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Parties

Dewdrop Enterprises Ltd

Applicant

Harree Construction Ltd

Respondent

Procedural Posture

Miscellaneous Application / Ruling on Application to Set Aside Arbitral Award

Legal Issues

  1. 1 Whether the application to set aside the arbitral award was filed within the statutory period under the Arbitration Act, 1995.
  2. 2 Whether the arbitrator exceeded his jurisdiction or failed to address issues within the terms of reference, specifically regarding costs and interest at commercial rates.
  3. 3 Whether the arbitral award was in conflict with the public policy of Kenya.

Ratio Decidendi

The court found that the application to set aside the arbitral award was filed within the statutory period, as the award was only published and received by the parties in August 2008. The arbitrator, having found in favour of the applicant, erred in failing to award costs of the arbitration and interest at commercial rates as contemplated by the sub-contract agreement. The arbitrator's refusal to award costs and commercial interest was outside the scope of the reference and contrary to the terms of the contract. The court set aside those parts of the award and substituted them with an order that the applicant is entitled to costs of the arbitration and interest at the commercial rate of...

Court Disposition

Application to set aside part of the arbitral award substantially succeeds.

Orders

  • The part of the arbitral award declining to award costs to the applicant is set aside and substituted with an order that the applicant is entitled to costs of the arbitration, including refund of part of the arbitrator's fees and advocate's costs.
  • The part of the arbitral award declining to award interest at commercial rate is set aside and substituted with an order that the applicant is entitled to interest at 15% per annum from 15th March 2006 until payment in full.