Veritas Shipping Ltd v. Anglo-Canadian Cement, Ltd

[1966] 1 Lloyds Rep. 76. (1966)

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Veritas Shipping Ltd v. Anglo-Canadian Cement, Ltd

England and Wales High Court of Justice, Queen’s Bench Division
[1966] 1 Lloyds Rep. 76. (1966)

Facts

In May 1964, Veritas Shipping Ltd (Veritas) (plaintiff) and Anglo-Canadian Cement, Ltd (Anglo) (defendant) entered a charter-party. The charter-party contained an arbitration clause referring any dispute to arbitration in London. The arbitration clause further provided that each party would appoint one arbitrator and that those arbitrators would appoint an umpire if the arbitrators could not resolve any disagreement. A dispute arose between the parties, causing the parties to initiate arbitration. Veritas nominated Mr. Clyde as an arbitrator and called on Anglo to nominate an arbitrator. Anglo nominated Dr. Wallersteiner, the company’s managing director, through a letter authored by Dr. Wallersteiner himself. Veritas objected to the appointment of Dr. Wallersteiner, claiming the close connection between Anglo and Dr. Wallersteiner disqualified him from being an arbitrator. Anglo refused to appoint anyone else as arbitrator, and Dr. Wallersteiner refused to withdraw. Veritas then filed a motion in the English courts, asking for the removal of Dr. Wallersteiner under § 23 of the Arbitration Act. Veritas argued that Dr. Wallersteiner’s appointment was inappropriate not only because of his connections to Anglo but because Dr. Wallersteiner appointed himself.

Rule of Law

Issue

Holding and Reasoning (McNair, J.)

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