Reference no: EM131378456
Turner Pte. Ltd. was the main contractor in the building of Gateway, a long-term project to be constructed in the heart of Singapore. One of Turner's subcontractors was a company called Builders Federal Ltd. (BFL).
As part of the overall contract, the two companies signed an arbitration agreement, which was designated as Clause 22 in the main contract. When the two parties found themselves in the middle of several serious disputes, they invoked Clause 22 and began arbitration. Turner asked that Mr. David Gardam be appointed as the arbitrator, and BFL asked for Mr. Douglas Smith. The court appointed Smith. From the outset there was bad blood between Turner and Smith, which was revealed in a series of letters that went back and forth between the parties and Smith.
At one point in the process, Turner realized that Clause 22 actually had no legal effect until each party activated it by giving their permission to proceed with arbitration. Smith denied that this was the case and ordered the arbitration process to continue. Turner objected, and Smith, who admitted that Turner had made a fairly convincing case, agreed to submit that argument to the High Court of Singapore.
Nevertheless, Smith pushed the arbitration process forward. BFL was delighted, but Turner objected. Still the action went forward despite the precarious nature of Smith's position as arbitrator. Can the high court of Singapore dismiss Smith even though BFL is quite satisfied with his work as arbitrator? What grounds might be used to dismiss Smith? If Smith is dismissed, will the arbitration process continue or start over?
Turner (East Asia) Pte. Ltd. v. Builders Federal (Hong Kong) Ltd. SLR 532 SGHC 47 (Singapore High Court)
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