Key Points:
A recent Queensland decision is a reminder to arbitrators and
parties alike of the importance of dealing with all the issues that
arise in an arbitration.
In the recent Queensland Supreme Court decision of Sugar
Australia Pty Limited v Mackay Sugar Ltd [2012] QSC 38 Justice
McMurdo ruled in favour of an applicant who sought orders that the
arbitrator's award be set aside pursuant to section 42 of the
Commercial Arbitration Act 1990 (Qld) because the arbitrator had
breached the rules of natural justice. This was because the
arbitrator decided the case on the basis of a proposition that had
not been addressed by either of the parties.
The facts
Sugar Australia Pty Limited was the manager of a joint venture
(the JV) which operated a sugar refinery at Racecourse, Queensland.
Mackay Sugar Ltd was a participant in the JV and owned and operated
an adjacent sugar mill.
