Courts / Galway / Report

Fayleigh v Plazaway: single incident of misconduct wouldn't cause loss of confidence in arbitrator

Summary

In 2016 the Supreme Court considered whether a single incident of misconduct by an arbitrator could justify the parties losing confidence in him. The case involved Fayleigh and Plazaway, who had a ten‑year hotel‑management contract that included a clause allowing Fayleigh to terminate the contract for a one‑year fee. In 2008 Plazaway stopped providing management services but continued with shared services, leading to a dispute over the timing and nature of the termination. The contract provided for arbitration, and hearings began in 2011. During the third day of hearings, Fayleigh sought to submit 17 volumes of discovered documents; Plazaway objected and the arbitrator, concerned about cost, decided to read the volumes later. In 2013 the arbitrator delivered a determination in favour of Plazaway for €476,000 without having read the documents, which Fayleigh challenged as misconduct. The High Court found misconduct, set aside part of the award and returned the dispute to the arbitrator.

Who, what, where, when and why

What: Report matter: Fayleigh v Plazaway: single incident of misconduct wouldn't cause loss of confidence in arbitrator. Procedural stage: hearing_or_decision

When:

• February 2011 Other
• June 2012 Hearing Or Sentence
• May 2013 Hearing Or Sentence
• 2016-01-01 Publication

Places mentioned

Topics

Stage Hearing Or Decision

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Read the original CNI report