Bay Hotel and Resort Limited and Zurich Indemnity Company of Canada v Cavalier Construction Co Ltd and Cavalier Construction Co Ltd: PC 16 Jul 2001

(Turks and Caicos Islands) A dispute after a construction contract was under standard terms according to the laws of Turks and Caicos islands. Two issues were appealed. What was a ‘reasoned award’ within the scheme, and whether the arbitrator could himself add a party to the arbitration. The substantive rather than procedural law of the country where the arbitration was carried out need not be that of the contract. The dispute properly fell to be arbitrated under the standard AAA terms, which provided that both the procedural and jurisdictional law to be applied would be that of the Islands. Though the award was insufficiently detailed to constitute a reasoned decision in English law, the evidence was that it would satisfy the requirements of the law under which it was issued. The clause regarding joinder was one restricting a power which must be derived elsewhere. There was no such power in this case, and the arbitrator was unable to join the other company without the consent of the other parties to the dispute.

Judges:

Lord Nicholls of Birkenhead, Lord Cooke of Thorndon, Lord Clyde, Lord Hutton, Lord Millett

Citations:

[2001] UKPC 34, Appeal No 32 0f 2000

Links:

Bailii, PC, PC, PC

Arbitration, Construction, Contract, Jurisdiction, Commonwealth

Updated: 01 June 2022; Ref: scu.159474