[2010] KEHC 4126 (KLR)

[2010] KEHC 4126 (KLR)

The court found that the arbitrator, a retired judge, failed to disclose his prior and ongoing relationships with the respondent's counsel and their firm, including legal representation for himself and family members and employment of his son. The court held that such non-disclosure was a material omission amounting to misconduct under the Arbitration Act and Civil Procedure Rules. The absence of any record or written note of disclosure in the arbitration proceedings or award, and the arbitrator's failure to swear an affidavit confirming disclosure, led the court to accept the applicant's version that no disclosure was made. The court reasoned that this failure created a perception of...

Citation
[2010] KEHC 4126 (KLR)
Parties
Applicant: Sobeth Developers Ltd; Respondent: South Nyanza Sugar Company Ltd
Court
High Court
Court Station
High Court at Kisii
Jurisdiction
Kenya
Judgment Date
14 May 2010
Case Number
Civil Case 85 of 2000
Procedural Posture
Miscellaneous Application / Ruling on Application to Set Aside Arbitral Award
Outcome
Application allowed; arbitral award set aside; stay of consequential orders; each party to bear its own costs.
Legal Topics
Arbitrator Bias, Setting Aside Award, Disclosure of Conflict, Arbitration Procedure, Impartiality of Arbitrator
Source Language
English
Alternative Dispute Resolution Civil Procedure Arbitrator Bias Setting Aside Award Disclosure of Conflict Arbitration Procedure Impartiality of Arbitrator

Case Brief

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Parties

Sobeth Developers Ltd

Applicant

South Nyanza Sugar Company Ltd

Respondent

Procedural Posture

Miscellaneous Application / Ruling on Application to Set Aside Arbitral Award

Legal Issues

  1. 1 Whether the arbitrator misconducted himself by failing to disclose relationships with the respondent's counsel and firm, amounting to bias.
  2. 2 Whether the arbitral award should be set aside due to non-disclosure and perceived bias.
  3. 3 Who should bear the costs of the application.

Ratio Decidendi

The court found that the arbitrator, a retired judge, failed to disclose his prior and ongoing relationships with the respondent's counsel and their firm, including legal representation for himself and family members and employment of his son. The court held that such non-disclosure was a material omission amounting to misconduct under the Arbitration Act and Civil Procedure Rules. The absence of any record or written note of disclosure in the arbitration proceedings or award, and the arbitrator's failure to swear an affidavit confirming disclosure, led the court to accept the applicant's version that no disclosure was made. The court reasoned that this failure created a perception of...

Court Disposition

Application allowed; arbitral award set aside; stay of consequential orders; each party to bear its own costs.

Orders

  • The arbitration award by Justice Akiwumi read on 15th May, 2003 is set aside.
  • Any consequential orders arising from the award are stayed.