ARBITRATION LAW — Arbitral Awards — Setting Aside Awards — Error of Law on Face of Award Justifies Setting Aside
Principle Statement
Since the arbitrators stated that the appellant did not prove pecuniary damages, it was no longer open to them to award substantial damages in place of nominal damages. That is another way of awarding punitive damages which parties excluded. The award carried an error of law on its face.
Ratio Decidendi (Source)
Per Ogbuagu, JSC, in Baker Marine Nig. Ltd v. Chevron Nig. Ltd (2006) NLC-123-374-2001(SC) at p. 13; Paras A–B.
"It seems to me that since the arbitrators had stated in the award that the Appellant did not prove that it suffered any pecuniary damages, it was no longer open to them to award substantial damages in the place of nominal damages which they recognized in the award as applicable. It is in my view another way of awarding punitive damages which parties by their contract have excluded. The award clearly carried an error of law on the face."
Explanation / Scope
An error of law appearing on the face of an arbitral award justifies setting it aside. The principle applies to arbitration law.
