Australia—Federal Court refuses enforcement of foreign award for procedural irregularities (Hub v Energy City Qatar)

Article summary

Arbitration analysis: In an appeal from a judgment of the Federal Court of Australia enforcing an arbitration award under section 8(3) of the International Arbitration Act 1974 (Cth) (IAA 1974),the Full Court of the Federal Court found that the arbitration award should not be enforced on the basis that the tribunal was not composed in accordance with the agreement of the parties, which is a proper basis to resist enforcement under IAA 1974, s 8(5)(e (implementing Article V(1)(d) of the New York Convention and Article 36(1)(a)(iv) of the Model Law). The court also found that as the failure to compose the tribunal in accordance with the agreement of the parties is fundamental to the jurisdiction of the arbitrators, there was little scope to exercise the court’s discretion to enforce the award. The case serves as a reminder of the importance of the parties’ agreement in any arbitration proceedings. It also confirms that Australian courts will interpret the...