Future Rustic Contruction (Pty) Ltd v Spillers Waterfront (Pty) Ltd and Another (9120/2010) [2011] ZAKZDHC 23; 2011 (5) SA 506 (KZD) (27 May 2011)

Future Rustic Contruction (Pty) Ltd v Spillers Waterfront (Pty) Ltd and Another (9120/2010) [2011] ZAKZDHC 23; 2011 (5) SA 506 (KZD) (27 May 2011)

The court found that the arbitral award was incomplete and uncertain, as it failed to specify the separate amounts awarded for each variation order, deductions for omitted work, and the rate and commencement date of interest. The agreement that the award would be 'without reasons' did not preclude the arbitrator from furnishing the specified details necessary to render the award complete and certain. Section 32(2) of the Arbitration Act empowers the court to remit the matter to the arbitrator for such purpose as it may direct, including the provision of particulars to clarify the award. The court exercised its discretion to remit the matter to the arbitrator to furnish the required...

Citation
[2011] ZAKZDHC 23
Parties
Applicant: Future Rustic Construction (Pty) Ltd; Respondent: Spillers Waterfront (Pty) Ltd; Respondent: Grant L. Lister-James N.O.
Court
Kwazulu-Natal High Court, Durban
Jurisdiction
South Africa
Judgment Date
27 May 2011
Case Number
9120/2010
Procedural Posture
Review Application / Application for Remittal of Arbitral Award Under Section 32(2) of the Arbitration Act
Outcome
Application granted. The matter is remitted to the arbitrator to furnish specified details. Costs awarded to the applicant.
Judges
K. Swain
Legal Topics
Arbitration Act Section 32, Remittal of Award, Incomplete Arbitral Award, Interest on Award, Variation Orders
Civil Procedure Commercial and Corporate Arbitration Act Section 32 Remittal of Award Incomplete Arbitral Award Interest on Award Variation Orders

Case Brief

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Parties

Future Rustic Construction (Pty) Ltd

Applicant

Spillers Waterfront (Pty) Ltd

Respondent

Grant L. Lister-James N.O.

Respondent

Procedural Posture

Review Application / Application for Remittal of Arbitral Award Under Section 32(2) of the Arbitration Act

Legal Issues

  1. 1 Whether the arbitral award was incomplete or vague and uncertain, justifying remittal under Section 32(2) of the Arbitration Act.
  2. 2 Whether the arbitrator was required to furnish separate amounts for each variation order and other components of the claim.
  3. 3 Whether the agreement that the award would be 'without reasons' precluded the applicant from seeking further particulars of the award.

Ratio Decidendi

The court found that the arbitral award was incomplete and uncertain, as it failed to specify the separate amounts awarded for each variation order, deductions for omitted work, and the rate and commencement date of interest. The agreement that the award would be 'without reasons' did not preclude the arbitrator from furnishing the specified details necessary to render the award complete and certain. Section 32(2) of the Arbitration Act empowers the court to remit the matter to the arbitrator for such purpose as it may direct, including the provision of particulars to clarify the award. The court exercised its discretion to remit the matter to the arbitrator to furnish the required...

Court Disposition

Application granted. The matter is remitted to the arbitrator to furnish specified details. Costs awarded to the applicant.

Orders

  • The matter is remitted to the second respondent for reconsideration.
  • The second respondent is ordered to furnish to the applicant and the first respondent the separate amounts awarded in respect of each of the variation orders 1 to 17 in the applicant's statement of claim.