Effect of unenforceable award

In Five Oceans Salvage Ltd v Wenzhou Timber Group Co [2011] EWHC 3282 (Comm) the award made by the arbitrator was, for reasons beyond his control, not enforceable. The questions raised in this case were whether the arbitrator could himself make a new award and, in the alternative, whether the existing award could be set aside for serious irregularity.

Five Oceans: the facts

WTG were the owners of a cargo of logs on board Medea K. On 19 October 2009 the vessel developed a serious list while still at anchor, and the crew abandoned ship. On 31 October 2009 the owners of the vessel, Hecate Shipping Co, entered into a salvage agreement with Five Oceans on the terms of the Lloyd’s Standard Salvage Agreement (LSSA) on behalf of itself and cargo owners. The LSSA provided that Five Oceans would