Cameroon Airlines v Transnet Ltd
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