DIFC ARB 004/2022

Muzama v Mihanti

This case involved an application to set aside an arbitration award. The award involved a contract to remove a wreck but the company found a dhow also needed to be removed which led to additional costs. The site was within a maritime exclusion zone and the contractor's vessels were prevented from leaving the zone by the Iraqi navy also causing dame. It was argued the other party had caused this by bribing an Iraqi MP. Issues included whether there had been a waiver to make several of the claims, and if the claim involving the dhow was in the scope of the arbitration. Also considered was whether this claim involved a state act so was outside the jurisdiction of the arbitration tribunal, if there had been a surprise element which one of the parties had been unable to argue against and the impact of public policy restrictions.

Background

This was the Claimant’s (C)'s application to set aside an arbitration award dated 2 November 2021 or, in the alternative, to set aside parts of it the “Application”

The Defendant (“D”) was a Dutch company and C is an Iraqi company owned by the Iraqi Ministry of Oil.