Key Facts
- •Nigeria challenged arbitration awards in favor of P&ID under section 68 of the Arbitration Act 1996.
- •The court found that the awards were obtained by fraud and were contrary to public policy.
- •P&ID sought leave to appeal the decision.
- •The court identified three key irregularities: perjury, bribery, and improper retention of documents.
- •P&ID's grounds of appeal challenged the court's application of the causation test and its findings on various aspects of the case.
- •The court considered the high value of the case, the involvement of the Nigerian state, and the implications for arbitration practice.
Legal Principles
Section 68(2)(g) of the Arbitration Act 1996 allows for setting aside an award obtained by fraud or where the way in which it was procured is contrary to public policy.
Arbitration Act 1996
The court must consider whether it would be inappropriate to remit the matter to the tribunal for reconsideration before setting aside an award.
Section 68(3) of the Arbitration Act 1996
The causation test under section 68(2)(g) requires showing that the fraud caused or will cause substantial injustice. The court considered whether, but for the irregularities, the tribunal 'might well' have reached a different conclusion.
Section 68(2)(g) of the Arbitration Act 1996
The court considered whether Nigeria could have discovered the grounds for its objection with reasonable diligence during the arbitration (section 73 of the Arbitration Act).
Section 73 of the Arbitration Act 1996
Outcomes
Leave to appeal was refused.
P&ID had no real prospect of success on appeal, and the other reasons given were not compelling.
The arbitration awards were set aside.
The court found that the irregularities went to the root of the awards, and it would be inappropriate to remit the matter to the tribunal for reconsideration.