Arbitration – Is Confidentiality A Reality?

Confidentiality is considered one of the major benefits of arbitration and is, in some cases, the sole reason why parties opt for arbitration instead of normal court proceedings. The outcome in the recent case of Transnet Ltd v MV "Alina II" [2013] ZAWCHC 124(5 September 2013),however, might come as a surprise to those who consider the general principle of confidentiality in arbitration to be sacrosanct.

The context and relevant facts of the case are as follows. London arbitration proceedings were instituted against the owners of the Alina II by cargo interests pursuant to damages suffered as a result of the unseaworthy vessel occupying one of two iron-ore berths at the Port of Saldanha for approximately five months. Transnet (the port operator) instituted action against owners for damages relating to loss of income arising out of the same incident.

Transnet, in the Western Cape High Court of the Republic of South...