HABAS SINAI VE TIBBI GAZLAR ISTIHSAL ENDUSTRISI AS V VSC STEEL CO LTD

[2013] EWHC 4071 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Hamblen, 19 December 2013

Arbitration - Jurisdiction - Dispute as to validity of arbitration clause - Law applicable to validity of arbitration clause - Whether permission should be given for appeal for error of law - Arbitration Act 1996, sections 67 and 69

In arbitration proceedings VSC asserted that there was a contract of sale between itself and Habas and that Habas was in breach of the contract by failing to supply steel under the contract. The arbitrator held that he possessed jurisdiction, that there was a binding contract on the basis that Habas agents SP and CA had ostensible authority to conclude the contract on behalf of Habas, and that Habas was liable in the sum of US$3,142,500 plus interest and costs to be assessed. Habas appealed against the award on the grounds that the arbitrator had erred in finding that there was a binding arbitration clause (under section 67 of the Arbitration Act 1996) and, if that was wrong, that there was an error of law in relation to the assessment of damages (under section 69).