Wakilii

Kaseegu Technical Services Ltd v Adventist Development Relief Agency Ltd (CAD ARB 18 of 2011)

Tribunal · [2011] UGCADER 5 · 2011 Application Granted AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for compulsory appointment of an arbitrator under the Arbitration and Conciliation Act following failure of parties to agree on an arbitrator
Decision
Arbitrator appointed to resolve the underlying contractual dispute between the parties

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

The Centre for Arbitration and Dispute Resolution granted the application for compulsory appointment of an arbitrator. The tribunal held that where parties cannot agree on an arbitrator, the appointing authority has discretion to select a suitable person. In construction disputes involving technical matters, it is prudent to appoint an arbitrator with industry-specific knowledge rather than defaulting to a retired judge. The tribunal appointed Dr. Anania Mbabazi, a person with construction sector expertise, as arbitrator.

Outcome

Arbitrator appointed to resolve the underlying contractual dispute between the parties

Facts

The Applicant and Respondent entered into a contract on 12 November 2010 for construction of a valley dam and irrigation system for the Nakayot water and food security project. On 17 March 2011, the Respondent terminated the contract. The Applicant contested the termination and proposed two arbitrators on 1 April 2011. The Respondent rejected those nominees and proposed two retired judges on 5 April 2011. The Applicant rejected the Respondent's nominees on 11 May 2011 and indicated it would seek appointment of an arbitrator by CADER. The contract contained an arbitration clause requiring disputes to be settled exclusively by arbitration in Kampala. The Respondent alleged the Applicant did not complete the works and sought refund of monies advanced that were not utilized in execution of the contract.

Issues

  1. Whether the Centre for Arbitration and Dispute Resolution should appoint an arbitrator where parties failed to agree on a nominee.
  2. What qualifications and expertise should guide the appointment of an arbitrator in a construction contract dispute.

Orders

  • Application for compulsory appointment of an arbitrator granted.
  • Dr. Anania Mbabazi appointed as arbitrator.
  • In the event Dr. Anania Mbabazi cannot accept the appointment under s.12(1) Arbitration and Conciliation Act, the matter shall be referred sequentially to Raj Dewani or Victor Odongo.
  • Costs of the application awarded to the Applicant.

Rules and key headnotes

Arbitration & ADR — Appointment of Arbitrators — Discretion of Appointing Authority
The discretion of an appointing authority under the Arbitration and Conciliation Act to appoint an arbitrator is only fettered in the circumstances set out in section 11(6) of the Act.
Arbitration & ADR — Appointment of Arbitrators — Industry-Specific Expertise
In construction contract disputes involving technical matters, it is prudent to appoint an arbitrator with knowledgeable background in the construction sector who can apply cranial knowledge to the technical aspects of the project and secondly to legal issues arising therefrom, rather than defaulting to appointment of a retired judge.
Arbitration & ADR — Advantages of Arbitration — Choice of Specialist Arbitrators
One of the advantages of arbitration is the room accorded to parties to choose arbitrators who have industry or sector specific knowledge in the disputed subject matter.

Legislation cited (3)

Full judgment

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

Kaseegu Technical Services Ltd v Adventist Development Relief Agency Ltd (CAD ARB 18 of 2011) [2011] UGCADER 5 (14 September 2011)
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.