LMAA arbitration — Preliminary issue — Arbitrators' reading of without prejudice materials during amicable settlement talks — Truncated arbitration tribunal — Arbitrators arrested — English Arbitration Act 1996, section 52 — LMAA Rules, para 8(e) — Whether arbitration award rendered by the remaining two arbitrators valid.
Summary: At the late stage of an LMAA proceedings one member of the tribunal was arrested and detained for involvement in crimes. The remaining two members proceeded with the deliveration and rendered the final award in the absence of the missing arbitrator. The award was denied recognition and enforcement in PRC per a ruling of Xiamen Maritime Court on the ground that the arbitral procedure was not in compliance with the agreement of the parties and not in compliance with the law of the country where the arbitration took place, ie the UK.
This case is flagged as one of the "Top Ten Cases During China's 30 Years of Maritime Trials" in a meeting organised by the Supreme People's Court of China on 2 September 2014 for commemorating China' maritime judicial history over the past 30 years, ie from 1984 – when China established maritime courts alongside its coastlines – to 2014.
This case is reported on Chinese Maritime and Commercial [2016] Vol 6 on basis of a preliminary translated text provided by Dr Chen Yanzhong, Ph.D in International Law and a senior judge of Xiamen Maritime Court.