CWP v CWQ: Setting Aside Arbitral Award for Dredging Work Stoppages
In CWP v CWQ, the General Division of the High Court of Singapore dismissed CWP's application to set aside a partial final arbitral award dated 4 May 2022. The dispute arose from CWQ's claim for compensation for stoppages and delays in dredging works under a contract with CWP. CWP argued that the arbitral tribunal exceeded its scope and breached natural justice. The court, presided over by Justice S Mohan, found no basis to set aside the award, upholding the tribunal's decision.
1. Case Overview
1.1 Court
General Division of the High Court of the Republic of Singapore1.2 Outcome
Claimant's application dismissed.
1.3 Case Type
Arbitration
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore court dismisses CWP's application to set aside an arbitral award favoring CWQ for dredging work stoppages, upholding party autonomy.
1.7 Decision Date
2. Parties and Outcomes
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| S Mohan | Judge | Yes |
4. Counsels
4. Facts
- CWP engaged to carry out dredging and land reclamation works in Ruritania City Port.
- CWP sub-contracted the dredging works to CWQ via an agreement dated 12 May 2017.
- The contract was governed by English law and provided for arbitration in Singapore.
- CWQ was to deploy four vessels to carry out the dredging works.
- The works were to be completed within a 90-day period from the commencement date of 26 May 2017.
- CWQ sought compensation from CWP under Art 3.9 for stoppages to the operation of the Vessels.
- CWP completely denied any liability under Art 3.9.
5. Formal Citations
- CWP v CWQ, Originating Application No 419 of 2022, [2023] SGHC 61
6. Timeline
| Date | Event |
|---|---|
| Contract signed | |
| Commencement date of works | |
| Works completed | |
| Arbitration proceedings commenced | |
| Award issued | |
| Affidavit of SSJ dated | |
| Affidavit of KFB dated | |
| Hearing date | |
| Judgment reserved |
7. Legal Issues
- Scope of Submission to Arbitration
- Outcome: The court held that the arbitral tribunal's decision was within the scope of submission to arbitration.
- Category: Procedural
- Sub-Issues:
- Acceptance of unpleaded arguments
- Related Cases:
- [2015] 3 SLR 488
- [2021] 2 SLR 1279
- [2020] 5 SLR 894
- [2021] 2 SLR 235
- [2022] 1 SLR 505
- [2022] 2 SLR 557
- [2023] SGHC(I) 1
- Breach of Natural Justice
- Outcome: The court held that there was no breach of natural justice by the arbitral tribunal.
- Category: Procedural
- Sub-Issues:
- Failure to consider evidence
- Failure to consider arguments
- Denial of opportunity to present case
- Related Cases:
- [2007] 3 SLR(R) 86
- [2020] 1 SLR 695
- [2013] 4 SLR 972
- [2022] 1 SLR 1080
- Interpretation of Contractual Clauses
- Outcome: The court upheld the arbitral tribunal's interpretation of the contractual clauses.
- Category: Substantive
- Sub-Issues:
- Interpretation of Article 3.9
- Interpretation of Article 22
- Related Cases:
- [2015] 2 WLR 1593
8. Remedies Sought
- Setting aside of arbitral award
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Arbitration
- Commercial Litigation
- Construction Disputes
11. Industries
- Construction
- Marine Engineering
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| AKN and another v ALC and others and other appeals | Court of Appeal | Yes | [2015] 3 SLR 488 | Singapore | Cited for the principle that the inference of an arbitrator's failure to consider an important pleaded issue must be clear and virtually inescapable. |
| Bloomberry Resorts and Hotels Inc and another v Global Gaming Philippines LLC and another | Court of Appeal | Yes | [2021] 2 SLR 1279 | Singapore | Cited as a warning that courts must be wary of attempts by an aggrieved party to mount what is, in effect, an appeal in disguise. |
| TYN Investment Group Pte Ltd v ERC Holdings Pte Ltd and another | N/A | Yes | [2020] 5 SLR 894 | Singapore | Cited for the proposition that the notice of arbitration exhaustively defines the parameters within which the arbitration must operate, but the court found the reliance misplaced. |
| CDM and another v CDP | Court of Appeal | Yes | [2021] 2 SLR 235 | Singapore | Cited for the principle that in determining the scope of the parties’ submission to arbitration, the court may have regard to five sources. |
| CAJ and another v CAI and another appeal | Court of Appeal | Yes | [2022] 1 SLR 505 | Singapore | Cited for the principle that the five sources for determining the scope of the parties’ submission to arbitration are not discrete or independent sources. |
| CJA v CIZ | Court of Appeal | Yes | [2022] 2 SLR 557 | Singapore | Cited for the principle that the court must look at matters in the round to determine whether the issues in question were live issues in the arbitration. |
| CFJ and another v CFL and another and other matters | Singapore International Commercial Court | Yes | [2023] SGHC(I) 1 | Singapore | Cited for the principle that a practical view must be taken regarding the substance of the dispute being referred to arbitration. |
| Soh Beng Tee & Co Pte Ltd v Fairmount Development Pte Ltd | N/A | Yes | [2007] 3 SLR(R) 86 | Singapore | Cited for the principle that a party challenging an award on the basis of a breach of natural justice must establish the breach, its connection to the award, and prejudice to its rights. |
| China Machine New Energy Corp v Jaguar Energy Guatemala LLC and another | N/A | Yes | [2020] 1 SLR 695 | Singapore | Cited for the principle that a party challenging an award on the basis of a breach of natural justice must establish the breach, its connection to the award, and prejudice to its rights. |
| TMM Division Maritima SA de CV v Pacific Richfield Marine Pte Ltd | N/A | Yes | [2013] 4 SLR 972 | Singapore | Cited for the principle that a tribunal must ensure that all essential issues are dealt with, but need not address each and every argument raised by a party. |
| Ng Koon Yee Mickey v Mah Sau Cheong | N/A | Yes | [2022] 2 SLR 1296 | Singapore | Cited for the principle that a promisee cannot insist upon the performance of an obligation which it has prevented the promisor from performing. |
| Multiplex Constructions (UK) Ltd v Honeywell Control Systems Ltd (No. 2) | N/A | Yes | (2007) 111 ConLR 78 | United Kingdom | Cited for the principle that the employer cannot hold the contractor to a specified completion date, if the employer has by act or omission prevented the contractor from completing by that date. |
| Adyard Abu Dhabi v SD Marine Services | N/A | Yes | (2011) 136 ConLR 190 | N/A | Cited for the explanation that the rationale behind the prevention principle necessarily meant a delay in fact and not a notional or hypothetical delay. |
| Arnold v Britton and others | UK Supreme Court | Yes | [2015] 2 WLR 1593 | United Kingdom | Cited for English law principles on contractual interpretation, stating that the language of the provision itself was clear and unambiguous in its meaning. |
| L W Infrastructure Pte Ltd v Lim Chin San Contractors Pte Ltd and another appeal | N/A | Yes | [2013] 1 SLR 125 | Singapore | Cited for the principle that to establish actual or real prejudice, the aggrieved party must be able demonstrate that the breach could reasonably have made a difference to the outcome of the arbitration. |
| BZW and another v BZV | N/A | Yes | [2022] 1 SLR 1080 | Singapore | Distinguished for its exceptional facts, where the tribunal had completely failed to even mention most of the defenses raised by the arbitration respondent. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| International Arbitration Act 1994 | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Arbitration
- Arbitral Award
- Setting Aside
- Party Autonomy
- Natural Justice
- Stoppage
- Dredging Works
- Time for Completion
- Force Majeure
- National Security Clearance
- Import Permit
- Demurrage
15.2 Keywords
- arbitration
- construction
- contract
- dredging
- stoppage
- award
- setting aside
17. Areas of Law
16. Subjects
- Arbitration
- Contract Law
- Construction Dispute