Sellar v. Highland Railway Co. and Others [1918] ScotLR 752 (19 July 1918)

Sellar v. Highland Railway Co. and Others [1918] ScotLR 752 (19 July 1918)

The Highland Railway Company was liable for the pursuer's expenses incurred in the abortive arbitration because they appointed an arbiter who was disqualified by virtue of being a shareholder, a fact known or readily ascertainable to them. There is a legal duty to appoint a qualified arbiter, and breach of this duty entitles the other party to damages.

Citation
[1918] ScotLR 752
Parties
Pursuer: Colin Reid Sellar; Defenders: Highland Railway Company and Others
Jurisdiction
Scotland
Judgment Date
19 July 1918
Procedural Posture
Civil / Appeal (reclaiming Motion) From Lord Ordinary
Outcome
Appeal dismissed; interlocutor of Lord Ordinary adhered to.
Legal Topics
Implied Term, Disqualification of Arbiter, Statutory Arbitration, Obligation to Appoint Qualified Arbiter, Lands Clauses Consolidation (scotland) Act 1845
Contract Arbitration Damages Implied Term Disqualification of Arbiter Statutory Arbitration Obligation to Appoint Qualified Arbiter Lands Clauses Consolidation (scotland) Act 1845

Case Brief

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Parties

Colin Reid Sellar

Pursuer

Highland Railway Company and Others

Defenders

Procedural Posture

Civil / Appeal (reclaiming Motion) From Lord Ordinary

Legal Issues

  1. 1 Is there an implied obligation or legal duty for a party appointing an arbiter to ensure the arbiter is not disqualified?
  2. 2 Is the party liable for expenses incurred in an abortive arbitration due to appointment of a disqualified arbiter?

Ratio Decidendi

The Highland Railway Company was liable for the pursuer's expenses incurred in the abortive arbitration because they appointed an arbiter who was disqualified by virtue of being a shareholder, a fact known or readily ascertainable to them. There is a legal duty to appoint a qualified arbiter, and breach of this duty entitles the other party to damages.

Court Disposition

Appeal dismissed; interlocutor of Lord Ordinary adhered to.

Orders

  • Defenders liable to pursuer for payment of expenses incurred in the reference.
  • Accounts remitted to Auditor for taxation.