Duma v Mader International Pty Ltd

In the matter of *Duma v Mader International Pty Ltd*, the applicant, Mr. Duma, sought to set aside an arbitration award made by an arbitrator appointed under the *Commercial Arbitration Act 2011* (NSW). The dispute concerned a contract for the supply of goods, and Mr. Duma alleged that the arbitration award was invalid due to apprehended bias on the part of the arbitrator.

The primary legal issue before the court was whether the arbitrator’s conduct gave rise to a reasonable apprehension of bias, thereby vitiating the arbitration award. Specifically, the court had to consider whether the arbitrator’s prior professional relationship with the respondent’s legal representatives, and certain communications between the arbitrator and the respondent’s counsel, were sufficient to establish a lack of impartiality.

Judge Burchardt found that while the arbitrator had a prior professional association with the respondent’s solicitors, this association alone did not establish apprehended bias. However, the court determined that the arbitrator’s ex parte communications with the respondent’s counsel, which involved discussing the merits of the case and the arbitrator’s own views on the evidence, created a reasonable apprehension of bias. The court reasoned that such communications undermined the appearance of impartiality and the integrity of the arbitral process, as they suggested the arbitrator had formed a view on the case without hearing from both parties.

Consequently, the court ordered that the arbitration award be set aside.