GREAT STATION PROPERTIES SA V UMS HOLDING LTD

[2017] EWHC 2398 (Comm), Queen's Bench Division, Commercial Court, Teare J, 5 October 2017

Arbitration - Serious irregularity - Alleged failure to take account of all evidence - Duty to give reasons - Construction of award - Arbitration Act 1996, sections 33, 52(4), 68(2)(a) and (d)

The parties established a Joint Venture Agreement (JVA) through which they held interests in a number of companies, including NPO, a company based in Ukraine and involved in the manufacture of gas compressors. The relationship between the parties broke down, leading to disputes under the JVA and under a related Option Agreement. The claimants alleged that the respondents had, in breach of the JVA, perpetrated an "Illicit Scheme" whereby they covertly diverted profits and opportunities away from NPO to two companies connected to the respondents, causing damage in the sum of US$55.8 million. The claimants also alleged that they had been entitled to exercise a Put Option under the Option Agreement and so were entitled to a sum of US$250 million in return for the sale of those shares. The tribunal found for the claimants and awarded the sums claimed. The respondents sought to challenge the award under section 68 of the Arbitration Act 1996. The respondents argued that the tribunal had stated findings, and conclusions based upon those findings, without making any attempt to reconcile them with the countervailing evidence and arguments put forward by the respondents. The respondents also argued that the tribunal's conclusions were illogical.