A & G Insurance Services Pty Ltd v Stratton Finance Pty Ltd

A & G Insurance Services Pty Ltd (the applicant) sought to enforce an arbitration award against Stratton Finance Pty Ltd (the respondent). The dispute arose from a contract for the provision of insurance broking services, which contained an arbitration clause. Following a dispute over commission payments, an arbitration was conducted, resulting in an award in favour of A & G Insurance Services. Stratton Finance subsequently sought to set aside the award, leading to the present proceedings in the Supreme Court of Victoria.

The primary legal issue before the Court was whether the arbitration award should be set aside pursuant to section 34(2)(b)(ii) of the *Commercial Arbitration Act 2011* (Vic) (the Act). This section permits a court to set aside an award if it is satisfied that the award is in conflict with the public policy of Victoria. Stratton Finance contended that the arbitrator had misconducted the proceedings by failing to give it a fair opportunity to present its case, thereby rendering the award contrary to public policy.

Justice Wilson found that the arbitrator had not misconducted the proceedings in a manner that would justify setting aside the award. The Court applied the principles established in cases concerning the interpretation of "public policy" in the context of arbitration, emphasizing that it is a high threshold to meet. His Honour considered the evidence of the arbitration proceedings and concluded that Stratton Finance had been afforded a reasonable opportunity to present its arguments and evidence. The Court held that the arbitrator's procedural decisions, even if arguably erroneous, did not amount to a denial of natural justice or a breach of public policy sufficient to warrant intervention.

The application to set aside the arbitration award was dismissed.