Lim Chin San Contractors v L W Infrastructure: Setting Aside Arbitrator's Award for Breach of Natural Justice
In Lim Chin San Contractors Pte Ltd v L W Infrastructure Pte Ltd, the Singapore High Court heard an application by Lim Chin San Contractors Pte Ltd to set aside an arbitrator's additional award of pre-award interest to L W Infrastructure Pte Ltd. The court, presided over by Justice Lai Siu Chiu, granted the application, finding that the arbitrator breached the rules of natural justice by failing to provide Lim Chin San Contractors Pte Ltd with an adequate opportunity to be heard before issuing the additional award. The court set aside the additional award, ordering L W Infrastructure Pte Ltd to bear the costs.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Plaintiff's application granted; Additional Award set aside.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court set aside an arbitrator's additional award of pre-award interest due to a breach of natural justice, specifically audi alteram partem.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| L W Infrastructure Pte Ltd | Defendant | Corporation | Additional Award set aside | Lost | |
| Lim Chin San Contractors Pte Ltd | Plaintiff | Corporation | Application granted | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lai Siu Chiu | Judge | Yes |
4. Counsels
4. Facts
- The defendant served a Notice of Arbitration on the plaintiff on 22 June 2004.
- The arbitrator rendered a Final Award on 29 June 2010, awarding the plaintiff $341,391.10.
- The Final Award did not include an award of liquidated damages to the defendant.
- The defendant appealed, and the Final Award was remitted to the arbitrator for reconsideration of liquidated damages.
- The arbitrator then awarded the defendant $945,000 for liquidated damages in Supplementary Award No 2.
- The defendant's solicitor requested pre-award interest, which the arbitrator granted in an Additional Award.
- The arbitrator awarded $274,114.61 as pre-award interest to the defendant.
5. Formal Citations
- Lim Chin San Contractors Pte Ltd v L W Infrastructure Pte Ltd, Originating Summons No. 988/2011, [2012] SGHC 75
6. Timeline
| Date | Event |
|---|---|
| Notice of Arbitration served by the defendant on the plaintiff. | |
| Arbitrator rendered his Final Award. | |
| Arbitrator issued a Supplementary Award. | |
| Justice Judith Prakash dismissed the plaintiff’s appeal and substantially allowed the defendant’s appeal. | |
| Arbitrator rendered his Supplementary Award No 2 (Remitted Issues). | |
| Defendant’s solicitor wrote to the Arbitrator with a request for “pre-award interest”. | |
| Arbitrator issued Additional Award. | |
| High Court granted the plaintiff’s application to set aside the Additional Award. | |
| Appeals to this decision in Civil Appeals Nos 17 and 26 of 2012 were dismissed by the Court of Appeal. |
7. Legal Issues
- Breach of Natural Justice
- Outcome: The court found that the arbitrator breached the rule of audi alteram partem by failing to give the plaintiff an adequate opportunity to be heard before issuing the Additional Award.
- Category: Procedural
- Sub-Issues:
- Failure to provide adequate notice
- Failure to provide opportunity to be heard
- Related Cases:
- [2007] 3 SLR(R) 86
- [2010] SGHC 80
- Validity of Additional Award under Section 43(4) of the Arbitration Act
- Outcome: The court found that s 43(4) was not in and of itself a ground upon which the court could declare the Additional Award a nullity and set it aside.
- Category: Substantive
- Sub-Issues:
- Whether the claim was presented during arbitration proceedings
- Whether the claim was omitted from the award
8. Remedies Sought
- Order to set aside the Additional Award
- Declaration that the Additional Award be declared a nullity
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Arbitration
- Construction Disputes
- Commercial Litigation
11. Industries
- Construction
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| LW Infrastructure Pte Ltd v Lim Chin San Contractors Pte Ltd | High Court | Yes | [2011] 4 SLR 477 | Singapore | Cited as the decision where the Final Award was remitted to the Arbitrator for reconsideration of the issue of liquidated damages. |
| Soh Beng Tee & Co Pte Ltd v Fairmount Development Pte Ltd | Court of Appeal | Yes | [2007] 3 SLR(R) 86 | Singapore | Cited for the principle of minimal curial intervention in arbitration proceedings and the requirements for establishing a breach of the rules of natural justice. |
| Panchaud Frères SA v Pagnan and Fratelli | N/A | Yes | [1974] 1 Lloyd’s Rep 394 | N/A | Cited by the defendant for the proposition that arbitral awards can be remitted for reconsideration of interest. |
| Leong Kum Whay v QBE Insurance (M) Sdn Bhd & Ors | N/A | Yes | [2006] 1 MLJ 710 | Malaysia | Cited by the defendant for the proposition that arbitral awards can be remitted for reconsideration of interest. |
| Front Row Investment Holdings (Singapore) Pte Ltd v Daimler South East Asia Pte Ltd | High Court | Yes | [2010] SGHC 80 | Singapore | Cited for the definition of the rule of natural justice known as audi alteram partem. |
| John Holland Pty Ltd v Toyo Engineering Corp (Japan) | N/A | Yes | [2001] 1 SLR(R) 443 | N/A | Cited and approved in Soh Beng Tee for the requirements to establish a breach of natural justice. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Arbitration Act (Cap 10, 2002 Rev Ed) s 48(1)(a)(vii) | Singapore |
| Arbitration Act (Cap 10, 2002 Rev Ed) s 43(4) | Singapore |
| Arbitration Act (Cap 10, 2002 Rev Ed) s 43(5) | Singapore |
| Arbitration Act (Cap 10, 2002 Rev Ed) s 47 | Singapore |
| Arbitration Act (Cap 10, 2002 Rev Ed) s 44(2) | Singapore |
| Arbitration Act (Cap 10, 2002 Rev Ed) s 48 | Singapore |
| Arbitration Act (Cap 10, 2002 Rev Ed) s 48(1)(a)(iv) | Singapore |
| Arbitration Act (Cap 10, 2002 Rev Ed) s 22 | Singapore |
| Arbitration Act (Cap 10, 2002 Rev Ed) s 35(2) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitration
- Arbitration Act
- Additional Award
- Pre-award interest
- Natural justice
- Audi alteram partem
- Functus officio
- Minimal curial intervention
15.2 Keywords
- arbitration
- natural justice
- construction
- pre-award interest
- arbitrator
- award
- singapore
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Arbitration | 95 |
| Administrative Law | 20 |
| Contract Law | 15 |
16. Subjects
- Arbitration
- Breach of Natural Justice
- Construction Dispute