Van Zyl v BB Truck & Tractor Services (Edms) Bpk (49342/07) [2008] ZAGPHC 295 (8 October 2008)

Van Zyl v BB Truck & Tractor Services (Edms) Bpk (49342/07) [2008] ZAGPHC 295 (8 October 2008)

The court found that the arbitration proceedings and the award were a nullity because the arbitration clause in the contract was void for vagueness, particularly regarding the appeal provisions, and the invalid provisions could not be severed from the valid ones. Furthermore, the arbitrator exceeded his jurisdiction by awarding relief not contemplated in the referral, rendering the award ab initio void. The court held that the award could not be made an order of court under section 31(1) of the Arbitration Act. Even if a formal application to set aside the award under section 33(2) was required, the respondent's delay would have been condoned and the award set aside. The applicant's...

Citation
[2008] ZAGPHC 295
Parties
Applicant: Albertus Johannes van Zyl; Respondent: BB Truck & Tractor Services (Edms) Bpk
Court
High Courts - Gauteng
Jurisdiction
South Africa
Judgment Date
8 October 2008
Case Number
49342/07
Procedural Posture
Review Application / Judgment on Application to Declare Arbitration Award a Nullity and to Make It an Order of Court
Outcome
Application dismissed. Arbitration award declared a nullity. Applicant ordered to pay costs.
Judges
B.R. Southwood
Legal Topics
Arbitration Award Review, Severability of Contract, Arbitrator Jurisdiction, Nullity of Award
Civil Procedure Commercial and Corporate Arbitration Award Review Severability of Contract Arbitrator Jurisdiction Nullity of Award

Case Brief

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Parties

Albertus Johannes van Zyl

Applicant

BB Truck & Tractor Services (Edms) Bpk

Respondent

Procedural Posture

Review Application / Judgment on Application to Declare Arbitration Award a Nullity and to Make It an Order of Court

Legal Issues

  1. 1 Whether the arbitration proceedings and award were valid under the arbitration clause in the contract.
  2. 2 Whether the arbitration clause was void for vagueness and whether the invalid provisions could be severed.
  3. 3 Whether the arbitrator exceeded his jurisdiction in making the award.

Ratio Decidendi

The court found that the arbitration proceedings and the award were a nullity because the arbitration clause in the contract was void for vagueness, particularly regarding the appeal provisions, and the invalid provisions could not be severed from the valid ones. Furthermore, the arbitrator exceeded his jurisdiction by awarding relief not contemplated in the referral, rendering the award ab initio void. The court held that the award could not be made an order of court under section 31(1) of the Arbitration Act. Even if a formal application to set aside the award under section 33(2) was required, the respondent's delay would have been condoned and the award set aside. The applicant's...

Court Disposition

Application dismissed. Arbitration award declared a nullity. Applicant ordered to pay costs.

Orders

  • It is declared that the arbitration award of Mr. J. de Klerk delivered on 11 June 2007 in the matter between the applicant and respondent is a nullity.
  • The applicant's application is dismissed.