Rare Successful Challenge To Arbitral Award On Grounds Of Serious Irregularity

Oldham v QBE Insurance (Europe) Ltd [2017] EWHC 3045 (Comm)

In a decision of the new Business & Property Courts, Mr Justice Popplewell heard applications under section 68 of the Arbitration Act 1996 (AA 1996) (serious irregularity) and AA 1996, s 69 (appeal on a point of law) in respect of an arbitral award. The AA 1996, s 69 appeal concerned a reimbursement of monies paid out under an insurance policy which the arbitrator found did not provide coverage. Popplewell J found no error of law and upheld the award on this point. The challenges under AA 1996, s 68 were, however, successful as the arbitrator had erred in ordering costs and a payment on account of costs in favour of the insurer without giving the insured a fair opportunity to present his arguments. Here we look at the lessons to be learnt from the decision.