Sea Containers Ltd v ICT Pty Ltd

Sea Containers Ltd (the applicant) sought to remove ICT Pty Ltd (the respondent) as arbitrators in a dispute concerning cancellation and commitment fees. The applicant alleged misconduct on the part of the arbitrators, specifically a reasonable apprehension of bias. The matter came before the Court of Appeal of New South Wales.

The central legal issue before the Court of Appeal was whether the arbitrators had engaged in misconduct, warranting their removal under section 44 of the Commercial Arbitration Act 1984 (NSW). This encompassed determining whether the arbitrators' conduct gave rise to a reasonable apprehension of bias, thereby undermining the integrity of the arbitration process.

The Court of Appeal considered the applicant's allegations of unilateral alteration of the arbitration agreement by the arbitrators. However, the Court found no evidence to support these claims or to establish a reasonable apprehension of bias. The judges were not persuaded that the arbitrators had acted improperly or in a manner that would compromise their impartiality.

Consequently, the appeal was dismissed, and the applicant was ordered to pay the costs of the respondent.