Misconduct under s 42(1)(a) of the Commercial Arbitration Act 1986 (ACT) requires some real dereliction of duty by the arbitrator, not mere procedural error or error of law. An arbitrator's failure to determine a matter that was not pleaded as an issue in the arbitration does not constitute misconduct, even where evidentiary material on the topic was received during the hearing. The old cases on failure to decide a referred issue must be read in light of the modern policy of supporting arbitration and limiting judicial interference. Even where misconduct is established, the court retains a discretion whether to set aside the award.
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