Sellar v. Highland Railway Co. [1918] ScotLR 593 (16 May 1918)

Sellar v. Highland Railway Co. [1918] ScotLR 593 (16 May 1918)

An arbiter who holds shares in a company that is a party to the reference is disqualified from acting, and any award following such a reference is invalid. The pursuer did not waive the objection by lodging representations under protest after learning of the disqualification.

Citation
[1918] ScotLR 593
Parties
Pursuer: Colin Reid Sellar; Defender: Highland Railway Company; Defender: Charles Pullar Hogg; Defender: George Davidson of Wellwood; Defender: John Wilson, K.C.
Jurisdiction
Scotland
Judgment Date
16 May 1918
Procedural Posture
Action of Reduction / Inner House, First Division, Reclaiming Motion (appeal) Against Lord Ordinary's Interlocutor
Outcome
Appeal dismissed; interlocutor of Lord Ordinary adhered to.
Legal Topics
Disqualification of Arbiters, Pecuniary Interest, Waiver of Objection, Reduction of Arbitral Award
Arbitration Company Law Judicial Disqualification Disqualification of Arbiters Pecuniary Interest Waiver of Objection Reduction of Arbitral Award

Case Brief

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Parties

Colin Reid Sellar

Pursuer

Highland Railway Company

Defender

Charles Pullar Hogg

Defender

George Davidson of Wellwood

Defender

John Wilson, K.C.

Defender

Procedural Posture

Action of Reduction / Inner House, First Division, Reclaiming Motion (appeal) Against Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether an arbiter holding shares in a party company is disqualified from acting as arbiter in a reference involving that company
  2. 2 Whether the pursuer waived the objection to the arbiter's disqualification by lodging representations against the proposed findings after learning of the disqualification

Ratio Decidendi

An arbiter who holds shares in a company that is a party to the reference is disqualified from acting, and any award following such a reference is invalid. The pursuer did not waive the objection by lodging representations under protest after learning of the disqualification.

Court Disposition

Appeal dismissed; interlocutor of Lord Ordinary adhered to.

Orders

  • Sustained the first plea-in-law for the pursuer.
  • Repelled the first plea-in-law for the defenders, reserving the question of relevancy of the pursuer's pecuniary conclusions.