Wakilii

Ariel Investment Ltd v Kamuntu Investments Ltd (CAD ARB 66 of 2017)

Tribunal · [2018] UGCADER 6 · 2018 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for appointment of arbitrator following respondent's refusal to consent to mediation
Decision
Arbitrator appointed by CADER under statutory authority

Observed later treatment

No later-treatment classification is recorded for this judgment.

Citator coverage is limited to judgments in the Wakilii corpus and source-matched treatment records. Absence of a signal is not an assertion that the case remains good law.

AI-generated summary. This summary was generated by AI from the full text of the judgment. It may contain errors or omissions—always read the source judgment before relying on it.

Holding

The tribunal held that the respondent's refusal to consent to mediation constituted abandonment of the agreed dispute resolution process, thereby opening the arbitration channel under the contract. Although the dispute resolution clause designated the courts of England and Wales to appoint a mediator if parties could not agree, the respondent's rejection of mediation frustrated this right. The tribunal found that CADER had jurisdiction under the Arbitration and Conciliation Act to appoint an arbitrator as statutory relief where parties failed to establish an arbitral tribunal, notwithstanding the contract's reference to AFSA Rules.

Outcome

Arbitrator appointed by CADER under statutory authority

Facts

The parties executed a Consultancy Agreement on 18 February 2018 containing a multi-tiered dispute resolution clause requiring without prejudice meetings, non-binding mediation, and arbitration governed by AFSA Rules. When a dispute arose, the applicant's counsel on 15 September 2017 nominated CADER as mediator and required the respondent's consent within three days, stating that CADER would automatically become arbitrator if consent was not given. On 4 October 2017, the respondent's counsel rejected both mediation and the nomination of CADER as mediator. The applicant then applied to CADER for appointment of an arbitrator. The respondent argued that only the courts of England and Wales could appoint a mediator under the contract, and that AFSA, not CADER, should appoint any arbitrator.

Issues

  1. Whether the courts of England and Wales have exclusive jurisdiction to appoint a mediator under the dispute resolution clause.
  2. Whether the respondent's refusal to consent to mediation constitutes abandonment of the agreed dispute resolution process.
  3. Whether CADER has jurisdiction to appoint an arbitrator under the Arbitration and Conciliation Act where the parties' agreement references AFSA Rules.

Orders

  • Application granted.
  • Arbitrator appointed under s.10(2) of the Arbitration and Conciliation Act.
  • Respondent to bear the applicant's costs of the application.

Rules and key headnotes

Arbitration & ADR — Multi-tiered Dispute Resolution Clauses — Effect of Party's Refusal to Participate in Mediation
Where a contract provides for sequential dispute resolution stages including mediation followed by arbitration, a party's outright refusal to participate in mediation constitutes abandonment of the mediation stage and opens the arbitration channel, even if the mediation stage has not been formally exhausted.
Arbitration & ADR — Appointment of Arbitrators — Statutory Relief Under National Arbitration Law
Where parties fail to establish an arbitral tribunal in accordance with their agreement, the national arbitration authority has jurisdiction under the Arbitration and Conciliation Act to appoint an arbitrator as statutory relief, notwithstanding that the parties' agreement references foreign arbitration rules or institutions.
Arbitration & ADR — Arbitration Agreements — Relationship Between National Law and Institutional Rules
Where a contract is performed in Uganda, the Arbitration and Conciliation Act applies as the law of statutory relief for instituting an arbitral tribunal. Institutional arbitration rules designated by the parties govern the conduct of arbitration proceedings but do not displace the national arbitration law's provisions for establishing the tribunal where parties fail to do so.
Arbitration & ADR — Appointment of Arbitrators — Mutual Obligation of Parties
The arbitration clause imposes a mutual obligation on both parties to take proactive steps to establish the arbitral tribunal. A party who fails to engage constructively in the appointment process, including by failing to propose alternative arbitrators or to seek compliance with agreed procedural rules, abandons their right to object to statutory appointment by the national arbitration authority.

Legislation cited (1)

Cases cited (1)

  • B.M. Steels v Kilembe Mines (CAD ARB 10 of 2004)

Full judgment

↓ Download PDF

The original judgment as reported. Read the original PDF before relying on any passage.

Ariel Investment Ltd v Kamuntu Investments Ltd (CAD ARB 66 of 2017) [2018] UGCADER 6 (16 March 2018)
Source: this page presents Wakilii’s issue analysis and metadata for a publicly reported Ugandan judgment. Any AI-generated summary is marked as such. Judgment text is sourced from the Uganda Legal Information Institute (ulii.org). Wakilii is not affiliated with ULII.