Lesotho Highlands Development Authority (Respondents) v Impregilo SpA and others (Appellants)

This appeal, which originated from a dispute under a construction contract, involves the interpretation of the Arbitration Act 1996. The dispute arose from an award made by arbitrators in a construction contract governed by the law of Lesotho. The primary issues before the House of Lords were whether the arbitrators had exceeded their powers under section 68(2)(b) of the Act in making decisions regarding the currency of the award and the grant of pre-award interest. The House of Lords, in a majority opinion, held that the arbitrators had not exceeded their powers. The Lords reasoned that an error of law, even if present, did not amount to an excess of power under section 68(2)(b). They emphasised that the section was intended to cover cases where the tribunal purported to exercise a power it did not have, not merely erroneous exercise of an available power. The Lords also noted that the Arbitration Act 1996 was designed to limit court intervention in arbitral processes, consistent with the ethos of promoting one-stop adjudication. The House allowed the appeal, set aside the order for remission of the award, and dismissed the employer's application.