Scrabster Harbour Trust v. Mowlem Plc (t/a Mowlem Marine) & Anor [2006] ScotCS CSIH_12 (22 February 2006)

Scrabster Harbour Trust v. Mowlem Plc (t/a Mowlem Marine) & Anor [2006] ScotCS CSIH_12 (22 February 2006)

The parties did not intend that compliance with Article 1:3 of the Scottish Arbitration Code, including the proposal of an arbitrator's name, was a formal requirement for a valid Notice of Arbitration under the contract. The contract required only a written notice referring the dispute to arbitration. Mowlem's letter of 15 September 2004 satisfied this requirement and was a valid Notice of Arbitration.

Citation
[2006] ScotCS CSIH_12
Parties
Pursuers and Reclaimers / Defenders and Reclaimers: Scrabster Harbour Trust; Defenders and Respondents / Pursuers and Respondents: Mowlem plc, trading as Mowlem Marine
Jurisdiction
Scotland
Judgment Date
22 February 2006
Procedural Posture
Reclaiming Motions (appeals) in Commercial Actions / Appeal From Interlocutors Dated 23 March 2005, Inner House, Court of Session
Outcome
Appeal refused; interlocutor of the Lord Ordinary affirmed.
Legal Topics
Arbitration Notice Validity, Contractual Incorporation of Arbitration Codes, Interpretation of Contractual Formalities, Finality of Adjudicator's Decision
Construction Law Arbitration Contract Law Arbitration Notice Validity Contractual Incorporation of Arbitration Codes Interpretation of Contractual Formalities Finality of Adjudicator's Decision

Case Brief

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Parties

Scrabster Harbour Trust

Pursuers and Reclaimers / Defenders and Reclaimers

Mowlem plc, trading as Mowlem Marine

Defenders and Respondents / Pursuers and Respondents

Procedural Posture

Reclaiming Motions (appeals) in Commercial Actions / Appeal From Interlocutors Dated 23 March 2005, Inner House, Court of Session

Legal Issues

  1. 1 Whether a letter dated 15 September 2004 from Mowlem to Scrabster constituted a valid notice requiring arbitration under the contract and the Scottish Arbitration Code 1999, specifically Article 1:3(g)
  2. 2 Whether strict compliance with Article 1:3 of the Code was a formal requirement for a valid Notice of Arbitration under the contract

Ratio Decidendi

The parties did not intend that compliance with Article 1:3 of the Scottish Arbitration Code, including the proposal of an arbitrator's name, was a formal requirement for a valid Notice of Arbitration under the contract. The contract required only a written notice referring the dispute to arbitration. Mowlem's letter of 15 September 2004 satisfied this requirement and was a valid Notice of Arbitration.

Court Disposition

Appeal refused; interlocutor of the Lord Ordinary affirmed.

Orders

  • Mowlem's notice of 15 September 2004 is a valid Notice of Arbitration under the contract.
  • Scrabster's action dismissed.