[2012] KEHC 5854 (KLR)

[2012] KEHC 5854 (KLR)

The court found that, notwithstanding the statutory limitations on judicial intervention in arbitral proceedings, the conduct of the arbitrator must adhere to the principles of impartiality and natural justice. The arbitrator's refusal to grant an adjournment when the applicant's principal counsel was absent, coupled with the apparent haste to conclude the proceedings and issue a final award, created an appearance of bias and undermined confidence in the arbitral process. The court held that the arbitrator failed to inspire confidence in both parties and did not sufficiently consider the requirements of natural justice, especially given the magnitude of the claim. As a result, the court...

Citation
[2012] KEHC 5854 (KLR)
Parties
Applicant: Kay Construction Co. Ltd; Respondent: Attorney General; Respondent: Eng. Joseph T. Thuo
Court
High Court
Court Station
High Court at Nairobi (Milimani Law Courts)
Jurisdiction
Kenya
Judgment Date
24 September 2012
Case Number
Miscellaneous Civil Application 130 of 2011
Procedural Posture
Miscellaneous Application / Ruling on Notice of Motion for Stay of Proceedings Pending Determination of Substantive Application
Outcome
application allowed
Judges
DO Ogembo
Legal Topics
Arbitrator Removal, Stay of Arbitral Proceedings, Natural Justice, Impartiality of Arbitrator
Source Language
English
Alternative Dispute Resolution Civil Procedure Arbitrator Removal Stay of Arbitral Proceedings Natural Justice Impartiality of Arbitrator

Case Brief

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Parties

Kay Construction Co. Ltd

Applicant

Attorney General

Respondent

Eng. Joseph T. Thuo

Respondent

Procedural Posture

Miscellaneous Application / Ruling on Notice of Motion for Stay of Proceedings Pending Determination of Substantive Application

Legal Issues

  1. 1 Whether the arbitrator displayed impartiality sufficient to inspire confidence in both parties.
  2. 2 Whether the arbitrator adhered to the tenets of natural justice in the conduct of the arbitration, particularly regarding the denial of adjournment.

Ratio Decidendi

The court found that, notwithstanding the statutory limitations on judicial intervention in arbitral proceedings, the conduct of the arbitrator must adhere to the principles of impartiality and natural justice. The arbitrator's refusal to grant an adjournment when the applicant's principal counsel was absent, coupled with the apparent haste to conclude the proceedings and issue a final award, created an appearance of bias and undermined confidence in the arbitral process. The court held that the arbitrator failed to inspire confidence in both parties and did not sufficiently consider the requirements of natural justice, especially given the magnitude of the claim. As a result, the court...

Court Disposition

application allowed

Orders

  • Stay of proceedings being conducted by the 1st Respondent in respect of the dispute between the Applicant and the 2nd Respondent arising from their contract agreement dated 21st February 1991 pending the hearing and determination of the substantive application.
  • Costs of the application to be borne by the Respondents.