Arbitration case law digest 2

WALKER AND OTHERS V. ROWE AND OTHERS

In a recent decision the Commercial Court found that it had no power to grant post-award interest on a sum awarded by the arbitrators but remaining unpaid after the award where the award did not make provision for payment of post-award interest.

The decision highlights the importance of applying to the arbitral tribunal both for pre-award and post-award interest pursuant to Section 49 of the Arbitration Act 1996, given that a failure to do so cannot be subsequently rectified by the court.

PACOL LIMITED V. JOINT STOCK CO ROSSAKHAR

The award, made in an arbitration conducted under the Rules of the Sugar Association, was set aside on grounds of serious irregularity. The arbitral tribunal had made an adverse decision on liability without prior notice to the parties even though liability had been admitted and was no longer in issue.

This case may serve as a useful reminder for arbitrators, in particular in document only commodity arbitrations, not to introduce into their awards matters which are no longer in issue between the parties.

WEALANDS V. CLC CONTRACTORS LTD AND KEY SCAFFOLDING LTD AND ANOTHER

The Court of Appeal stayed the defendant's third party claim for contribution or indemnity under the Civil Liability (Contribution) Act 1978 in favour of arbitration. The decision confirmed that under the Arbitration Act 1996 arbitrators retained jurisdiction to award contribution.

To read the case summaries in full, please go to the LawNow section of our website (http://www.cmck.com) and click on "Your latest information". For further information please contact Neil Aitken, head of our International Arbitration group at [email protected] or on +44 (0)20 7367 3000.