Brief arbitral award upheld where contractual terms disclosed its reasoning and no patent error appeared on the record.
A brief arbitral award is not invalid as non-speaking if its reasoning can be gathered from the contractual terms expressly referred to in the award. Here, the award relied on the tender terms and price list clause showing that prices were exclusive of sales tax and that any sales tax would be payable extra, so the basis of the decision was discernible. The award also disclosed no error apparent on the face of the record, because allowing recovery of sales tax over and above the listed price was consistent with the contract. The award in favour of the respondent was therefore upheld.
Issues: (i) whether the umpire's award was a non-speaking award and therefore invalid; (ii) whether the award suffered from any error apparent on the face of the record so as to warrant interference.
Issue (i): whether the umpire's award was a non-speaking award and therefore invalid.
Analysis: The award referred to the terms of the tender and the price list clause stating that prices were exclusive of sales tax and that sales tax, if any, would be payable extra. Though the reasoning was brief and not elaborately discussed, the basis of the decision was discernible from the narration of those terms.
Conclusion: The award was a speaking award and was not invalid on the ground that it was non-speaking.
Issue (ii): whether the award suffered from any error apparent on the face of the record so as to warrant interference.
Analysis: The parties were aware that the listed prices were subject to sales tax being charged extra if the tax liability arose. In the circumstances, the view taken that the respondent could recover sales tax over and above the listed price was consistent with the contractual terms and disclosed no patent error.
Conclusion: No error apparent on the face of the award was shown and interference was unwarranted.
Final Conclusion: The award in favour of the respondent was upheld and the challenge to it failed.
Ratio Decidendi: A brief award is not non-speaking if its rational basis can be gathered from the terms expressly referred to in the award, and interference is not justified in the absence of an error apparent on the face of the award.
TaxTMI 
AI Drafter ✕
TaxTMI 
