Wakilii

Lubmarks Investments Ltd v Kampala Capital City Authority (CAD ARB 17 of 2013)

Tribunal · [2013] UGCADER 5 · 2013 Application Dismissed AI-generated summary ↓ Download Pin to watchlist Add to matter
Jurisdiction
Uganda
Case Type
Application for appointment of arbitrator following adjudication award
Decision
Application for appointment of arbitrator dismissed

Observed later treatment

No later-treatment classification is recorded for this judgment.

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Holding

Application for appointment of arbitrator dismissed. Where a contract clause gives the aggrieved party the sole right to appoint an arbitrator without requiring inter-party collaboration, s.11 Arbitration and Conciliation Act does not empower an appointing authority to make the appointment unless the party exercises that right and the appointment mechanism fails. The applicant expressed desire to arbitrate but never actually appointed an arbitrator as required by the contract.

Outcome

Application for appointment of arbitrator dismissed

Facts

Lubmarks Investments Ltd and Kampala Capital City Authority executed a contract for road maintenance on 16 February 2012. A dispute arose and was determined by an adjudicator on 5 April 2013 in favour of Lubmarks. Lubmarks received the award on 15 May 2013 but was dissatisfied with the amounts awarded. On 21 and 24 June 2013, Lubmarks wrote to the President of UIPE expressing its wish to refer the matter to arbitration. On 29 July 2013, UIPE advised Lubmarks to initiate arbitration in accordance with the Arbitration law of Uganda. On 27 September 2013, Lubmarks applied to CADER for appointment of an arbitrator. The contract clause provided that either party may refer the adjudicator's decision to an arbitrator within 28 days. The clause did not specify any procedure for appointment of the arbitrator or delegate the appointment task to any third party.

Issues

  1. Whether CADER can effect compulsory appointment of an arbitrator under s.11 Arbitration and Conciliation Act when a party has not invoked its right to appoint an arbitrator.

Orders

  • Application dismissed.
  • Each party to bear its own costs.

Rules and key headnotes

Arbitration — Appointment of Arbitrator — Scope of Appointing Authority's Powers
Where an arbitration clause appropriates the sole right to appoint an arbitrator to the aggrieved party without requiring inter-party collaboration, the provisions of s.11 Arbitration and Conciliation Act empowering an appointing authority to make the appointment only apply where the inter-party collaboration mechanism has failed.
Arbitration — Appointment of Arbitrator — Party's Duty to Exercise Contractual Right
An appointing authority cannot compulsorily appoint an arbitrator under s.11 Arbitration and Conciliation Act where the party seeking arbitration has expressed a desire to arbitrate but has not actually exercised its contractual right to appoint the arbitrator.
Contract Law — Arbitration Clauses — Interpretation of Appointment Provisions
Where an arbitration clause does not outline any procedure for appointment of the arbitrator, does not delegate the task of appointment to any third party or appointing authority, and does not specify the arbitrator's qualifications, the clause appropriates the right to appoint an arbitrator solely to the aggrieved party as envisaged by s.11(2) Arbitration and Conciliation Act.

Legislation cited (2)

Full judgment

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

Lubmarks Investments Ltd v Kampala Capital City Authority (CAD ARB 17 of 2013) [2013] UGCADER 5 (12 December 2013)
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.