Luzon Hydro v Transfield: Setting Aside Arbitral Award for Alleged Breach of Natural Justice
Luzon Hydro Corporation sought to set aside an arbitral award against Transfield Philippines Inc. The High Court of Singapore, presided over by Judith Prakash J, dismissed the motion, finding no grounds to support the claim that the arbitral procedure was not in accordance with the parties' agreement or that a breach of the rules of natural justice had occurred. The dispute arose from a contract for the construction of a power station, with Luzon claiming liquidated damages and Transfield claiming extensions of time and outstanding payments. Luzon's application was based on concerns about the role of an expert appointed by the arbitral tribunal.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Motion dismissed with costs.
1.3 Case Type
Arbitration
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Luzon Hydro's application to set aside an arbitral award was dismissed, as no breach of natural justice or procedural irregularity was found.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Luzon Hydro Corp | Applicant | Corporation | Motion dismissed with costs | Lost | Wong Meng Meng, Anthony Soh, Carrie Gill |
| Transfield Philippines Inc | Respondent | Corporation | Motion dismissed | Won | Giam Chin Toon, Hui Choon Wai |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Judith Prakash | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Wong Meng Meng | Wong Partnership |
| Anthony Soh | Colin Ng and Partners |
| Carrie Gill | Colin Ng and Partners |
| Giam Chin Toon | Wee Swee Teow and Co |
| Hui Choon Wai | Wee Swee Teow and Co |
4. Facts
- Luzon and Transfield entered into a contract for the construction of a power station.
- Disputes arose between the parties regarding extensions of time and payments.
- The parties agreed to arbitration in Singapore under ICC rules.
- An arbitral tribunal was formed, and an expert was engaged to assist the tribunal.
- Luzon sought to set aside the arbitral award, alleging procedural irregularities and breach of natural justice.
- Luzon argued that the expert had overstepped his role and that the tribunal had relied on his advice without giving the parties an opportunity to comment.
5. Formal Citations
- Luzon Hydro Corp v Transfield Philippines Inc, OM 27/2004, [2004] SGHC 204
6. Timeline
| Date | Event |
|---|---|
| Luzon employed Transfield to design, construct, commission, test, complete and hand over the power station. | |
| Disputes arose between the parties. | |
| Transfield served a request for arbitration to the Secretariat of the International Court of Arbitration. | |
| The arbitral tribunal ordered that the arbitration proceedings be divided into three parts. | |
| The parties agreed that the first liability hearing should take place in Melbourne rather than Singapore. | |
| The parties and the arbitral tribunal agreed to engage Mr Rohan D Shorland as an expert to assist the arbitral tribunal. | |
| First hearing on liability conducted in Melbourne. | |
| First hearing on liability conducted in Melbourne. | |
| Mr Shorland rendered invoices on a monthly basis for work done during the period between May 2003 and December 2003. | |
| Mr Shorland rendered invoices on a monthly basis for work done during the period between May 2003 and December 2003. | |
| The chairman of the tribunal wrote to the parties and informed them that the tribunal had found it unnecessary to seek any written opinion from Mr Shorland. | |
| Third Partial Award was issued. | |
| Motion to set aside the Third Partial Award was dismissed with costs. |
7. Legal Issues
- Setting aside arbitral award
- Outcome: The court found no grounds to set aside the arbitral award.
- Category: Procedural
- Sub-Issues:
- Breach of natural justice
- Arbitral procedure not in accordance with parties' agreement
- Breach of natural justice
- Outcome: The court found no breach of the rules of natural justice.
- Category: Substantive
- Arbitral procedure
- Outcome: The court found that the arbitral procedure was in accordance with the agreement of the parties.
- Category: Procedural
8. Remedies Sought
- Setting aside of arbitral award
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Arbitration
11. Industries
- Construction
- Energy
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Luzon Hydro Corp v Transfield Philippines Inc | High Court | Yes | [2004] SGHC 204 | Singapore | This is the current case. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| International Arbitration Act (Cap 143A, 2002 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitration
- Arbitral award
- Setting aside
- Natural justice
- International Arbitration Act
- ICC Rules
- Expert
- Arbitral tribunal
- Extension of time
- Power station
15.2 Keywords
- Arbitration
- Setting aside
- Natural justice
- Construction
- Singapore
16. Subjects
- Arbitration
- Construction Law
17. Areas of Law
- Arbitration Law
- International Arbitration