VAN DER GIESSEN-D-NOORD SHIPBUILDING DIVISION BV V IMTECH MARINE & OFFSHORE BV

[2008] EWHC 2904 (Comm), Queen’s Bench Division, Commercial Court, Mr Justice Christopher Clarke, 26 November 2008

Arbitration – Serious irregularity – Substantial injustice – Failure by arbitrators to deal with all of the issues put to them – Whether award should be set aside in whole or in part – Effect of remission – Whether umpire should be appointed – Arbitration Act 1996, sections 21 and 68(2)(d)

Imtech agreed to carry out electrical works on a roll-on roll-off ferry being constructed by GN for Brittany Ferries. The arbitration clause provided that each party was to appoint an arbitrator and, if the arbitrators disagreed, the dispute was to be referred to an umpire. Disputes arose and the arbitrators found in favour of Imtech. An appeal by Imtech under s 68(2)(d) of the Arbitration Act 1996 – on the ground that the arbitrators had failed to consider all of the issues put to them and had disregarded what had been agreed between the parties – was successful in respect of a number of matters. The court held that the offending parts of the award should be set aside and that those issues should be remitted to the arbitrators for a fresh hearing, but with an umpire appointed on a contingent basis under s 21 of the 1996 Act so that the umpire could take over the reference in the event of disagreement.