Van der Giessen-de Noord Shipbuilding Division BV v Imtech Marine & Offshore BV [2008] EWHC 2904 (Comm)

Although a Tribunal may deal with issues concisely, it is likely to be a serious irregularity under section 68 of the Arbitration Act 1996 for a Tribunal to fail to deal with all essential issues. A failure to deal with an issue is not the same as a failure to set out the reasoning for rejecting a particular argument. The latter failure is remediable under section 70(4) of the Act, whilst the former failure is fatal. To read the judgment, click here.

Van der Giessen: A ‘highly complex’ arbitration took almost four weeks to hear but the award was ‘comparatively short’. The arbitrators expressly noted that it would be impracticable for them to address each and every point raised by the parties and confined their reasons to the essentials only. The court held that they had failed to deal with a number of issues. In all, four parts of the award relating to: (i) rate of interest; (ii) waiver/estoppel; (iii) variations process; and (iv) double counting of additional works, had been affected by serious irregularity and would be set aside upon an undertaking by the claimant that it would not seek to widen its arguments or evidence upon any further consideration of these issues by the tribunal.