Congregation of the Holy Spirit Church Ltd v Bobu Bisaso (CAD ARB 19 of 2018)
Observed later treatment
No later-treatment classification is recorded for this judgment.
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Holding
The tribunal appointed one arbitrator to preside over the dispute arising from a sale and purchase agreement, applying section 10(2) of the Arbitration and Conciliation Act where the arbitration clause did not specify the number of arbitrators. The applicant was awarded fifty percent of the costs of the application, the tribunal holding that advocates are entitled by law to pray for costs incidental to applications in arbitration proceedings.
Outcome
Arbitrator appointed; matter to proceed to arbitration
Facts
On 7 September 2017, the parties signed an agreement for sale and purchase of land. The respondent was the vendor and the applicant was the purchaser. The agreement contained an arbitration clause providing that disputes would be settled by mutual agreement, failing which they would be submitted to arbitration under the Arbitration and Conciliation Act. A dispute arose and the applicant applied for appointment of an arbitrator. The respondent did not oppose the appointment but opposed the prayer for costs, arguing that the applicant had made several attempts at amicable settlement, that an order for costs would go against the spirit of arbitration at this stage, and that counsel was not aware costs would be awarded at this stage.
Issues
- Whether an arbitrator should be appointed under the arbitration clause in the parties' agreement.
- Whether the applicant is entitled to costs of the application for appointment of arbitrator.
Orders
- One arbitrator appointed to preside over the dispute.
- Applicant awarded fifty percent of the costs of the application.
- Appointed arbitrator to be listed in consequential ruling.
Rules and key headnotes
Legislation cited (7)
- Arbitration and Conciliation Act Cap.4 s.10
- Arbitration and Conciliation Act Cap.4 s.11
- Arbitration and Conciliation Act Cap.4 s.68
- Advocates Act Cap.267 s.1(c)
- Constitution Article 129(1)(d)
- Advocates (Remuneration and Taxation of Costs) Rules S.I.267-4
- Advocates (Remuneration and Taxation of Costs) (Amendment) Regulations S.I. No.7 of 2018
Full judgment
The original judgment as reported. Read the original PDF before relying on any passage.