Yarraman Pine P/L v Forestry Plantations Queensland

[2009] QCA 102

Queensland Court of Appeal

Built by Barristers,
For Australian Law.

See how it works

Interrogate

Catchwords

1. Arbitration
2. › Conduct of arbitral proceedings
3. › Powers, duties and discretion of arbitrator
4. › Scope of arbitral review of contractual discretionary determination
5. › Whether arbitrator entitled to undertake full merits review of original decision
6. › Whether limited to review for error
7. › Commercial Arbitration Act 1990 (Qld)
1. Contract
2. › Construction
3. › Discretionary powers under contract
4. › Price review mechanism
5. › Whether determination by one party subject to merits review or limited review on arbitration
6. › Implied obligation to act honestly, fairly and reasonably
1. Contract
2. › Construction
3. › Dispute resolution clauses
4. › Arbitration clause
5. › Scope of arbitrable dispute
6. › Whether dispute as to value is justiciable absent allegation of error

Quick Take

Where a contract confers a broad discretionary power on one party to determine value, and provides for arbitration of disputes about that determination, the arbitrator is limited to reviewing whether the determination was made in accordance with the contract (including implied obligations of honesty, fairness and reasonableness) and cannot conduct a full merits review. However, if the arbitrator finds error, the arbitrator may substitute its own determination where the contract does not provide for remission, does not confer 'sole discretion', and does not state the determination is final. The question whether WMC Resources correctly equates arbitral review of price determinations with appellate review of discretionary decisions was left open.