Front Row v Daimler: Setting Aside Arbitration Award for Breach of Natural Justice
In Front Row Investment Holdings (Singapore) Pte Ltd v Daimler South East Asia Pte Ltd, the Singapore High Court allowed Front Row's application to set aside part of an arbitration award. The court found that the arbitrator breached the rule of natural justice by failing to consider all of Front Row's misrepresentation claims against Daimler. The court ordered that the counterclaim be tried afresh by a newly appointed arbitrator.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Application allowed; part of the award dealing with the counterclaim set aside.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Front Row's application to set aside an arbitration award against Daimler was allowed due to a breach of natural justice. The arbitrator failed to consider all misrepresentation claims.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Daimler South East Asia Pte Ltd | Respondent, Claimant | Corporation | Claim Dismissed, Counterclaim Allowed | Lost | |
| Front Row Investment Holdings (Singapore) Pte Ltd | Applicant, Respondent | Corporation | Application allowed in part | Partial |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Andrew Ang | Judge | Yes |
4. Counsels
4. Facts
- Front Row and Daimler entered into an agreement to jointly run a racing series.
- Front Row was responsible for financing the venture.
- Daimler was responsible for organizing the Asian Cup Series.
- Daimler was to ensure Buehler devoted 100% of his time to the series.
- Front Row purchased 35 SLK 55 cars for the racing series.
- Daimler only organized three races, which were not successful.
- Mercedes-AMG informed Front Row the cars were not made for actual racing.
5. Formal Citations
- Front Row Investment Holdings (Singapore) Pte Ltd v Daimler South East Asia Pte Ltd, Originating Summons No 1126 of 2009, [2010] SGHC 80
6. Timeline
| Date | Event |
|---|---|
| Agreement signed between Front Row and Daimler | |
| Mercedes-AMG letter received by Front Row | |
| Daimler commenced arbitration proceedings against Front Row | |
| Arbitration Award issued | |
| Front Row filed originating summons | |
| Decision Date |
7. Legal Issues
- Breach of Natural Justice
- Outcome: The court found that the arbitrator breached the rule of natural justice by failing to consider all of Front Row's misrepresentation claims.
- Category: Procedural
- Sub-Issues:
- Failure to consider all submissions
- Failure to give a fair hearing
- Misrepresentation
- Outcome: The court did not rule on the merits of the misrepresentation claim but found that the arbitrator failed to consider all aspects of it.
- Category: Substantive
8. Remedies Sought
- Setting aside part of the arbitration award
- Re-trial of the counterclaim by a newly appointed arbitrator
9. Cause of Actions
- Misrepresentation
10. Practice Areas
- Commercial Litigation
- Arbitration
11. Industries
- Automotive
- Sports
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| John Holland Pty Ltd v Toyo Engineering Corp (Japan) | High Court | Yes | [2001] 1 SLR(R) 443 | Singapore | Cited for the test to establish a breach of natural justice in challenging an arbitration award. |
| Soh Beng Tee & Co Pte Ltd v Fairmount Development Pte Ltd | Court of Appeal | Yes | [2007] 3 SLR(R) 86 | Singapore | Cited for the test to establish a breach of natural justice in challenging an arbitration award and the principles of natural justice. |
| Pacific Recreation Pte Ltd v SY Technology Inc | Court of Appeal | Yes | [2008] 2 SLR(R) 491 | Singapore | Cited for the principle that a court breaches natural justice if it decides a case on a basis not raised by the parties. |
| Koh Bros Building and Civil Engineering Contractor Pte Ltd v Scotts Development (Saraca) Pte Ltd | High Court | Yes | [2002] 2 SLR(R) 1063 | Singapore | Cited for the duty of an arbitrator to listen to both sides and give each side an opportunity to submit on all relevant points. |
| Timwin Construction v Façade Innovations | New South Wales Supreme Court | Yes | [2005] NSWSC 548 | Australia | Cited for the principle that there is a breach of natural justice when the arbitrator disregards the submissions made by a party during the hearing. |
| Lanskey v Noxequin | New South Wales Supreme Court | Yes | [2005] NSWSC 963 | Australia | Cited for the principle that a tribunal has to consider all issues raised by parties. |
| Trysams Pty Ltd v Club Constructions (NSW) Pty Ltd | New South Wales Supreme Court | Yes | [2007] NSWSC 941 | Australia | Cited for the principle that natural justice requires the adjudicator to consider the report unless he determined that it was, or was part of, a submission not duly made. |
| SEF Construction Pte Ltd v Skoy Connected Pte Ltd | High Court | Yes | [2009] SGHC 257 | Singapore | Cited to distinguish the present case where the arbitrator explicitly disregarded an issue, unlike in SEF Construction where the adjudicator had regard to the submissions. |
| Dongwoo Mann+Hummel Co Ltd v Mann+Hummel GmbH | High Court | Yes | [2008] 3 SLR(R) 871 | Singapore | Cited for the requirement of a causal nexus between the breach of natural justice and the making of the award. |
| Gas & Fuel Corporation of Victoria v Wood Hall Ltd & Leonard Pipeline Contractors Ltd | Supreme Court of Victoria | Yes | [1978] VR 385 | Australia | Cited for the essence of the two pillars of natural justice. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Arbitration Act (Cap 10, 2002 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Asian Cup Series
- Misrepresentation
- Natural Justice
- Arbitration Award
- Audi Alteram Partem
- SLK 55 cars
- Re-Amended Answer and Counterclaim
15.2 Keywords
- arbitration
- natural justice
- misrepresentation
- singapore
- contract
- award
- setting aside
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Misrepresentation | 90 |
| Contract Law | 80 |
| Arbitration | 75 |
| Natural justice | 70 |
| Breach of Contract | 60 |
| International Chamber of Commerce (ICC) | 40 |
16. Subjects
- Arbitration
- Contract Law
- Civil Procedure