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Cameroon Airlines v Transnet Ltd

Cameroon Airlines v Transnet Ltd 29 July 2004 Langley, J Commercial Court [2004] EWHC 1829 [2004] ArbLR 11 Arbitration award--Challenge--Procedural irregularity--Right to be heard Duty to act fairly--Majority arbitrators deciding issue on basis not argued by parties--Arbitrators not warning parties or affording opportunity to comment--Whether serious irregularity (yes)--Whether substantial injustice (yes)--Arbitration Act 1996, ss 33 and 68 Arbitrators acted unfairly in deciding case on basis not pleaded by the parties In 1994, Camair and Transnet, trading as South African Airways (`SAA'), concluded two maintenance contracts pursuant to which SAA was to maintain Camair's Boeing aircraft. The contracts were governed by South African law and subject to ICC arbitration. Camair alleged that SAA had engaged another company, Advanced Technics Trust Ltd (`ATT'), to bribe officials of the Cameroon government and Camair in order to secure the maintenance contracts. ATT had commenced action in South Africa in order to recover commission from SAA. In the South African proceedings, Transnet denied that ATT could assert any claim because the purpose of the contract had been to channel corrupt payments to Cameroon officials. Camair demanded the return of all monies paid under the maintenance contracts. Camair commenced arbitration in 2001 seeking repayment of US$55,553,886. SAA denied that http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Arbitration Law Reports and Review Oxford University Press

Cameroon Airlines v Transnet Ltd

Arbitration Law Reports and Review , Volume 2004 (1) – Jan 1, 2004

Cameroon Airlines v Transnet Ltd

Arbitration Law Reports and Review , Volume 2004 (1) – Jan 1, 2004

Abstract

29 July 2004 Langley, J Commercial Court [2004] EWHC 1829 [2004] ArbLR 11 Arbitration award--Challenge--Procedural irregularity--Right to be heard Duty to act fairly--Majority arbitrators deciding issue on basis not argued by parties--Arbitrators not warning parties or affording opportunity to comment--Whether serious irregularity (yes)--Whether substantial injustice (yes)--Arbitration Act 1996, ss 33 and 68 Arbitrators acted unfairly in deciding case on basis not pleaded by the parties In 1994, Camair and Transnet, trading as South African Airways (`SAA'), concluded two maintenance contracts pursuant to which SAA was to maintain Camair's Boeing aircraft. The contracts were governed by South African law and subject to ICC arbitration. Camair alleged that SAA had engaged another company, Advanced Technics Trust Ltd (`ATT'), to bribe officials of the Cameroon government and Camair in order to secure the maintenance contracts. ATT had commenced action in South Africa in order to recover commission from SAA. In the South African proceedings, Transnet denied that ATT could assert any claim because the purpose of the contract had been to channel corrupt payments to Cameroon officials. Camair demanded the return of all monies paid under the maintenance contracts. Camair commenced arbitration in 2001 seeking repayment of US$55,553,886. SAA denied that

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Publisher
Oxford University Press
Copyright
© Oxford University Press, 2007
Subject
Judgments
ISSN
2044-8651
eISSN
2044-9887
DOI
10.1093/alrr/2004.1.109
Publisher site
See Article on Publisher Site

Abstract

29 July 2004 Langley, J Commercial Court [2004] EWHC 1829 [2004] ArbLR 11 Arbitration award--Challenge--Procedural irregularity--Right to be heard Duty to act fairly--Majority arbitrators deciding issue on basis not argued by parties--Arbitrators not warning parties or affording opportunity to comment--Whether serious irregularity (yes)--Whether substantial injustice (yes)--Arbitration Act 1996, ss 33 and 68 Arbitrators acted unfairly in deciding case on basis not pleaded by the parties In 1994, Camair and Transnet, trading as South African Airways (`SAA'), concluded two maintenance contracts pursuant to which SAA was to maintain Camair's Boeing aircraft. The contracts were governed by South African law and subject to ICC arbitration. Camair alleged that SAA had engaged another company, Advanced Technics Trust Ltd (`ATT'), to bribe officials of the Cameroon government and Camair in order to secure the maintenance contracts. ATT had commenced action in South Africa in order to recover commission from SAA. In the South African proceedings, Transnet denied that ATT could assert any claim because the purpose of the contract had been to channel corrupt payments to Cameroon officials. Camair demanded the return of all monies paid under the maintenance contracts. Camair commenced arbitration in 2001 seeking repayment of US$55,553,886. SAA denied that

Journal

Arbitration Law Reports and ReviewOxford University Press

Published: Jan 1, 2004

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