Arbitration: A Case Of Procedural Irregularity And Wasted Costs

Guernsey continues to see a steady stream of disputes being referred to arbitration as an alternative method of dispute resolution. Appeals from decisions arising out of these arbitral processes are permitted under The Arbitration (Guernsey) Law 1982, although they do remain few and far between. The Royal Court recently heard an appeal of an arbitration decision in relation to a rent review which a landlord was unable to agree with its tenant, a retailer, in respect of a building it occupies in the centre of St Peter Port. The landlord was aggrieved by the arbitrator's award for a number of reasons and decided to appeal the finding.

One clear point to emerge from the appeal was the slower paced development of arbitration law in Guernsey compared to that in England and Wales. Although the judge hearing the landlord's appeal took guidance from the English legislature and case law, he did so with caution, noting that the English law provides the Court with a greater