Scrabster Harbour Trust v. Mowlem Plc (t/a Mowlem Marine) [2005] ScotCS CSOH_44 (23 March 2005)

Scrabster Harbour Trust v. Mowlem Plc (t/a Mowlem Marine) [2005] ScotCS CSOH_44 (23 March 2005)

The Notice of Arbitration served by Mowlem plc was valid despite not strictly complying with Article 1.3 of the Scottish Arbitration Code, because the contract required only a written notice to refer the dispute to arbitration, and the phrase 'shall be conducted in accordance with the Scottish Arbitration Code' referred to the conduct of the arbitration after commencement, not to the form of the notice. The absence of certain particulars in the notice did not render it invalid or prevent it from stopping the adjudicator's decision from becoming final and binding.

Citation
[2005] ScotCS CSOH_44
Parties
Pursuer (action No.1), Defender (action No.2): Scrabster Harbour Trust; Defender (action No.1), Pursuer (action No.2): Mowlem Plc (trading as Mowlem Marine)
Jurisdiction
Scotland
Judgment Date
23 March 2005
Procedural Posture
Commercial Action (court of Session, Scotland) / Debate on Relevancy of Pleadings; Determination of Validity of Notice of Arbitration
Outcome
Action No.1 (Scrabster Harbour Trust) dismissed as irrelevant; Decree of declarator granted in Action No.2 (Mowlem plc) that the Notice of Arbitration was valid.
Legal Topics
Validity of Notice of Arbitration, Interpretation of Contractual Arbitration Clauses, Compliance With Arbitration Code, Finality of Adjudicator's Decision
Construction Law Contract Law Arbitration Validity of Notice of Arbitration Interpretation of Contractual Arbitration Clauses Compliance With Arbitration Code Finality of Adjudicator's Decision

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Parties

Scrabster Harbour Trust

Pursuer (action No.1), Defender (action No.2)

Mowlem Plc (trading as Mowlem Marine)

Defender (action No.1), Pursuer (action No.2)

Procedural Posture

Commercial Action (court of Session, Scotland) / Debate on Relevancy of Pleadings; Determination of Validity of Notice of Arbitration

Legal Issues

  1. 1 Whether the Notice of Arbitration served by Mowlem plc complied with the contractual and Scottish Arbitration Code requirements and was therefore valid; Whether strict or substantial compliance with Article 1.3 of the Scottish Arbitration Code is required for a valid Notice of Arbitration; Whether the adjudicator's decision became final and binding due to alleged invalidity of the Notice of Arbitration.

Ratio Decidendi

The Notice of Arbitration served by Mowlem plc was valid despite not strictly complying with Article 1.3 of the Scottish Arbitration Code, because the contract required only a written notice to refer the dispute to arbitration, and the phrase 'shall be conducted in accordance with the Scottish Arbitration Code' referred to the conduct of the arbitration after commencement, not to the form of the notice. The absence of certain particulars in the notice did not render it invalid or prevent it from stopping the adjudicator's decision from becoming final and binding.

Court Disposition

Action No.1 (Scrabster Harbour Trust) dismissed as irrelevant; Decree of declarator granted in Action No.2 (Mowlem plc) that the Notice of Arbitration was valid.

Orders

  • Action No.1 dismissed.
  • Decree of declarator granted in Action No.2 in terms of the first conclusion.