Magistrates of Edinburgh v. Lownie [1903] ScotLR 40_471 (19 March 1903)

Magistrates of Edinburgh v. Lownie [1903] ScotLR 40_471 (19 March 1903)

An arbiter who becomes a member of one of the parties to the arbitration (here, the Town Council) is disqualified from acting, and this disqualification is not removed by subsequent resignation. The rule is absolute and not personal; prior involvement in the contract as adviser further supports disqualification. In the absence of waiver by both parties, either party may object to the arbiter's continued role.

Citation
[1903] ScotLR 40_471
Parties
Complainer/respondent: Lord Provost, Magistrates, and Town Council of Edinburgh; Respondent/reclaimer: John Lownie; Arbiter/respondent: William Ormiston
Jurisdiction
Scotland
Judgment Date
19 March 1903
Procedural Posture
Note of Suspension and Interdict / Inner House, First Division, on Reclaiming Motion
Outcome
Interdict granted; interlocutor of Lord Ordinary adhered to; Mr Ormiston interdicted from acting as arbiter.
Legal Topics
Disqualification of Arbiter, Conflict of Interest, Arbitration Procedure, Waiver of Objection
Arbitration Public Law Disqualification of Arbiter Conflict of Interest Arbitration Procedure Waiver of Objection

Case Brief

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Parties

Lord Provost, Magistrates, and Town Council of Edinburgh

Complainer/respondent

John Lownie

Respondent/reclaimer

William Ormiston

Arbiter/respondent

Procedural Posture

Note of Suspension and Interdict / Inner House, First Division, on Reclaiming Motion

Legal Issues

  1. 1 Whether an arbiter becomes disqualified by accepting office as a member of one of the parties to the arbitration (Town Council)
  2. 2 Whether resignation from such office removes the disqualification
  3. 3 Whether prior involvement/advice on the contract further disqualifies the arbiter

Ratio Decidendi

An arbiter who becomes a member of one of the parties to the arbitration (here, the Town Council) is disqualified from acting, and this disqualification is not removed by subsequent resignation. The rule is absolute and not personal; prior involvement in the contract as adviser further supports disqualification. In the absence of waiver by both parties, either party may object to the arbiter's continued role.

Court Disposition

Interdict granted; interlocutor of Lord Ordinary adhered to; Mr Ormiston interdicted from acting as arbiter.

Orders

  • Interdict against Mr Ormiston acting as arbiter in the dispute under the contract between the Town Council and Lownie.