ARBITRATORS TO BE REMOVED

Southland Times, Issue 24523, 26 August 1941, Page 6

ARBITRATORS TO BE REMOVED

Dispute Over Claim For Extras An order removing the arbitrators in the dispute between the Southland Building and Investment Society and the contractors of the society’s building in Tay street was made by his Honour Mr Justice Kennedy in a reserved judgment delivered in the Supreme Court yesterday. The arbitrators were Messrs Gorton Russell Stone, architect, of Dunedin, and Lachlan Gray, builder, of Invercargill. The contractors for the building were Andrew Lyon Divett Keen and Cecil Arthur Daily, of Invercargill. Two motions were submitted to the Court. The first was on behalf of the arbitrators to enlarge the time for making their award. The second was on behalf of the contractors to remove the arbitrators and to set aside the submission. At the hearing on May 27 and 28, Mr G. J. Reed appeared for the contractors and Mr H. J. Macalister for the arbitrators. On October 28, 1936, Keen and Daily entered into a contract with the Southland Building and Investment Society to erect a building for £20,934. The building was completed in 1938 and the contractors submitted a claim for £6136/12/11 for extras. It was agreed between the parties to refer to arbitration all questions in dispute. Messrs Stone and Gray were appointed arbitrators and it was laid down that their award should be made on or before November 30, 1940 The arbitrators later advised that their award would be completed not later than January 31, 1941. Keen and Daily raised objection and on January 11, 1941, revoked all the authority vested in the arbitrators and instituted proceedings for their removal.

“It is quite clear that, in the circum stances, the arbitrators completely misconducted the proceedings and that the contractors, who had all along taken the strongest objection to the proceedings, never waived their rights and are entitled to take objection to the misconduct of the proceedings,” stated his Honour in his judgment. “It should be added that no attack was made upon either the competency or the integrity of the arbitrators; their conduct of the arbitration arose from a mistake about their functions and what had been agreed upon. But, however it came about, the proceedings were misconducted by the arbitrators. An order is made removing the two arbitrators and appointing Mr J. S. Barton, of Wellington, manager to act as sole arbitrator in place of the two arbitrators so removed. I repeat that this removal implies no imputation upon the competency or integrity of the arbitrators. The time for making the award under the submission dated November 13, 1940, is enlarged until December 31, 1941. No order for costs is made on either motion.”