Arbitration - Stockman Interhold V Arricano

Court rules arbitrator had jurisdiction to take into account matters which occurred after the award when award remitted

As the textbook Russell on Arbitration explains, "The remission of an award does not deprive it of legal effect. It continues to operate so as to make the tribunal "functus officio", unable to alter the award, on those matters which were not remitted". In this case, the arbitrator's jurisdiction was revived by virtue of a remission by the English court and an issue arose as to the extent of the revival of the arbitrator's jurisdiction. The defendant had made a claim for specific performance when it started the arbitration and had also indicated a claim for damages in lieu or, or in addition to, specific performance but had made no submissions as to quantum.

The judge said that "the arbitrator cannot, on the face of things, allow an amendment to enable a party to introduce a new dispute into the reference which has, by definition, ended at the time of the making of the Award. The scope of the reference must be judged, in my judgment, as at the date of the initial award, since it is only matters within that reference that jurisdiction can be revived in respect of. However, in the final analysis, everything must depend on the proper construction of the Order of remission, viewed...