International Arbitration Law: Analyzing Award References Case Study

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Case Study
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This case study delves into the complexities of international arbitration law, focusing on the use of previous arbitral awards as references in subsequent cases. It examines the legal principles established in cases like Prima Paint Corp v. Flood & Conklin Manufacturing Co. and James Miller v Whitworth Street Estates, highlighting the importance of good faith and the validity of arbitration clauses. The analysis explores how arbitral tribunals and courts of justice consider prior decisions, emphasizing that the reference of a previous award is permissible if the underlying transaction is legal and the parties are bound by an arbitration agreement. The study concludes that in the given scenario, the sole arbitrator should accept the previously circulated arbitral award and proceed with the arbitration agreement, providing a comprehensive understanding of how previous awards can influence the resolution of international commercial disputes.
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Running head: INTERNATIONAL ARBITRATION LAW
International Arbitration Law
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1INTERNATIONAL ARBITRATION LAW
It is noteworthy to mention that International Arbitration has proved to be beneficial in
settling commercial disputes globally (Gaillard, E., 2014). It can be observed that in some cases
arbitral award does not involve the requirement of judicial enforcement in cases where both the
claimant and the respondent are parties to an arbitration clause. In Prima paint Corp v. Flood &
Conklin Manufacturing Co it was observed that the arbitral award directed by a different
arbitral tribunal was used as a reference to the present case as both the cases involved same
jurisdiction. In this case it was held by the judge that the contract depicted in the arbitration
clause can prove to be beneficial for an arbitrator and a court of justice in deciding that whether
the case should be decided based on previous decision. It is important on the part of the parties to
act in good faith. In Prima paint Corp v. Flood & Conklin Manufacturing Co it was held that
the reference of a previous arbitral award shall not be applicable in cases where the parties to
arbitration were fraudulently induced into signing the agreement. In this case it held by the
arbitrator that if no evidence is found on the part of the respondent then the claim for the
opposition of previously issued arbitral award shall be refused.
The Arbitration Act 1996 of United Kingdom provided that an arbitral award is final and
binding upon the parties. Therefore, it can be stated that the reference of a previous arbitral
award can be presented before an arbitral tribunal. It can be mentioned that various kinds of
commercial matters relating to present or future disputes may be presented as reference however,
the dispute shall not arise from an illegal transaction (Goode 2014). In this regard it can be noted
that in order to constitute the validity of a reference it is essential to mention the existence of a
dispute. However, it important that in order make reference of a previous arbitral award, the
parties may bind them to a present or future arbitration agreement. It is necessary that the parties
involved in arbitration agreement shall act in good faith. In this regard, it is worth noting that if
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2INTERNATIONAL ARBITRATION LAW
such agreement is related to the dispute at present then in such cases it will amount to reference
however, if the purpose was to provide relief to any future dispute, then it constitutes an
arbitration clause. In James Miller v Whitworth Street Estates case it has been observed that the
parties made reference of a previous arbitral award from a different arbitral tribunal. In the
abovementioned case, such reference of arbitral award was held to be legal as the transaction
associated with it was not illegal.
In the given scenario it can be seen that the claimant requested to restrain the respondent
from producing a copy of an arbitral award that has been previously issued by a different arbitral
tribunal. It has been argued by the claimant he did not have any knowledge regarding the
contents of the award however, assumes that it contains relevant information about the case. In
the present case study it can be observed that though the present arbitration contains vital
information about the case however, the transaction involved in this regard is not illegal in
nature. In this case, being a sole arbitrator it is essential in his part to review the copy of the
previous arbitral award which can act as a reference to the present case (Elsing and Townsend
2014).The sole arbitrator is at the authority to review the copy of the arbitral award presented by
the respondent because it was been stated by the respondent that the copy of the previous arbitral
award has no information about the case. It can be finally concluded that based on the
introductory case studies the sole arbitrator shall accept the previously circulated arbitral award
and proceed with the arbitration agreement.
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3INTERNATIONAL ARBITRATION LAW
References:
Elsing, S.H. and Townsend, J.M., 2014. Bridging the Common Law-Civil Law Divide in
Arbitration. Arbitration International, 18(1), pp.59-65.
Gaillard, E., 2014. Transnational Law: A Legal System or a Method of Decision
Making?. Arbitration International, 17(1), pp.59-72.
Goode, R., 2014. The role of the lex loci arbitri in international commercial
arbitration. Arbitration International, 17(1), pp.19-40.
James Miller & Partners Ltd. Appellants v Whitworth Street Estates (Manchester) Ltd.
Respondents [1970] A.C. 583.
Prima paint Corp v. Flood & Conklin Manufacturing Co. 388 U.S. 395 (1967).
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