i-law

International Construction Law Review

ALL’s WELL THAT ENDS WELL: LONDON REMAINS A SUITABLE VENUE FOR INTERNATIONAL ARBITRATION—BUT ONLY THANKS TO THE HOUSE OF LORDS

ANTONIO CRIVELLARO

Partner and Head of the International Arbitration Department Bonelli Erede Pappalardo Law Firm, Milan

1. SUMMARY OF THE CASE

The facts of the Katse (Lesotho ) case are perhaps known to the international construction community and to the readers of this Review .1 However, a brief summary will help in understanding the following comments. Reading these comments, the reader should be aware that, in the arbitration proceedings, the present author acted as counsel for the contractors.
Between 1991 and 1998, an unincorporated joint venture formed of eight co-contractors (six European and two South African companies, together “the claimants”) executed certain works comprising the construction of a major dam (known as Katse Dam) in the Kingdom of Lesotho for the Lesotho Highlands Development Authority (“LHDA”) as employer (due to a subsequent merger, the co-contractors became seven). During performance of the works, most of the disputes were settled by means of determinations by the engineer or recommendations by the Disputes Review Board (“DRB”) (the contract, the conditions of which were modelled upon FIDIC 4th edition, provided for both the engineer’s and the DRB’s interventions as pre-arbitral mechanisms for settling disputes).
Only a relatively small number of claims remained to be settled after completion of the works and, by the end of 1999, the contractors referred those pending claims to ICC arbitration as provided in the arbitration agreement (clause 67 of the contract). Although clause 67 provided that arbitration would take place in Geneva, considering that all three arbitrators appointed were based in London, it was agreed to move the venue, i.e. the “juridical seat”, from Geneva to London. The Terms of Reference drawn up under Article 18 of the ICC Rules reflected this change by indicating that the proceedings would be governed by both the UK Arbitration Act 1996 (the “Act”) and the ICC Rules.
On 25 January 2002, the arbitral tribunal issued an award in relation to all


Pt 4]
London Remains Venue for International Arbitration

481

The rest of this document is only available to i-law.com online subscribers.

If you are already a subscriber, click Log In button.

Copyright © 2024 Maritime Insights & Intelligence Limited. Maritime Insights & Intelligence Limited is registered in England and Wales with company number 13831625 and address 5th Floor, 10 St Bride Street, London, EC4A 4AD, United Kingdom. Lloyd's List Intelligence is a trading name of Maritime Insights & Intelligence Limited.

Lloyd's is the registered trademark of the Society Incorporated by the Lloyd's Act 1871 by the name of Lloyd's.