K/S A/S Bill Biakh and K/S A/S Bill Biali v. Hyundai Corp.
England and Wales High Court of Justice
1 Lloyd’s Rep. 187 (1988)
- Written by Whitney Waldenberg, JD
Facts
KS/ A/S Bill Biakh and K/S/ A/S Bill Biali (plaintiffs) purchased two ships from shipbuilder Hyundai Corp. (defendant). The contracts for purchase were governed by English law and included an arbitration clause requiring arbitration of any disputes between the parties to take place in London. A dispute arose regarding defects in the hatch covers of each ship. The parties agreed to conduct an initial investigation of the purported defects, and they agreed that the investigation would be “without prejudice.” The arbitral tribunal received evidence of the investigation’s results, and Hyundai objected, arguing that because the parties had agreed that the investigation was to be done without prejudice, the results of that investigation were inadmissible as evidence in the arbitration proceedings. The arbitral tribunal rejected Hyundai’s contention, and Hyundai sought an interlocutory declaration from the England and Wales High Court of Justice, pursuant to the United Kingdom’s Arbitration Act 1950, that the arbitrators’ admission of such evidence constituted misconduct and that such evidence should be inadmissible.
Rule of Law
Issue
Holding and Reasoning (Steyn, J.)
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