A Ltd v B Ltd
2014
COMMERCIAL COURT
United Kingdom
CORAM
- MR JUSTICE ANDREW SMITH
Areas of Law
- Commercial Law
- Arbitration Law
- Contract Law
2014
COMMERCIAL COURT
United Kingdom
CORAM
AI Generated Summary
A dispute arose between two overseas trading companies over unpaid cotton contracts and arbitration under ICA rules. The Tribunal ruled in favor of B, but A challenged the jurisdiction and serious irregularity of the decision. Failing to pay the required appeal fees led to the appeal's dismissal. The court had to determine if A had exhausted the
Judgment
Mr Justice Andrew Smith:
This case raises a question about the claimants’ right to bring proceedings under sections 67 and 68 of the Arbitration Act 1996 (the “1996 Act”). The facts are not in dispute and straightforward. In order to preserve their anonymity, I shall refer to the claimants as “A” and the defendants as “B”, and say that they both are overseas trading companies. B claim that A made two contracts to buy cotton from them and have not made payment under them. They contend that the contracts provided for “ICA rules and arbitration” (ICA referring, of course, to the International Cotton Association Limited), and on 8 February 2012 they brought a reference under the Bylaws of the ICA claiming nearly seven and a half million dollars. A deny making the contracts, and so deny having agreed to ICA (or any) arbitration. They participated in the arbitration proceedings and disputed the Tribunal’s jurisdiction.
In an award dated 26 February 2013 (the “Award”) the Tribunal concluded that it had jurisdiction to decide the reference and upheld the claim. Under the relevant ICA rules, the 2011 edition, parties have a right to appeal to a so-called Technical Appeal Committee (“TAC”). Bylaw 312(9) provides under the heading “Technical Appeal Committee” as follows:
“An appeal involves a new hearing of the dispute and the appeal committee can allow new evidence to be put forward. It may confirm, vary, amend or set aside the award of the first tribunal and make a new award covering all of the matters in dispute.”
Bylaw 311 is headed “Appeals” and provides as follows:
“1. If either party disagrees with the tribunal’s Award, it can appeal to us within the period specified in the Award. It must send Notice of Appeal to us.
Upon receipt of the Notice of Appeal we may demand that sums of money be deposited with us by the Appellant, by way of deposit against any fees, costs or expenses in connection with or arising out of the Appeal. Failure to pay within the specified period will result in the Appeal being dismissed.
The Directors, or appeal committee if appointed, can extend the time limits in Paragraph 2 above, but only if the firm concerned can show that substantial injustice would otherwise be done and the request for an extension is reasonable in all the circumstances. An extension will only be granted if it can be shown that substantial injustice may result of a request for an extension of time is refused …”
The period specified in the Award wa