DCC 9/1996

In this case after a decision to liquidate a partnership and management agreement, the parties agreed to go to arbitration. The court later extended the arbitration period and the key question was whether as this had been done without the express agreement of both parties and after the end of the agreed arbitration period it had made the award null and void.

Background

A claim was brought against three defendants asking the court to liquidate a partnership and management agreement between the parties. The parties subsequently agreed to arbitration before the court. The court then extended the arbitration period. The claimants asked for the award be ratified but the defendants asked for it be declared null and void. The court of first instance court ratified the award and the defendants appealed. The appeal court dismissed the claim as the defendants had continued to attend arbitration hearings despite the fact the arbitration proceedings had expired. In doing so, they had agreed to an extension. The defendants appealed by cassation arguing they had not agreed to an extension. They had merely continued to attend hearings as the arbitrator had not finished conducting the arbitration.

Decision