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2011INTERNATIONALARBITRATIONREPORT20JivrajTheCourtofAppealDecisionWiderImplicationstberespectedmembersoftheIsmailicommunitycontravenedandwasthereforevoidbyapplicationoftheRegulationsandortheHumanRightsAct1998andorpublicpolicy.MrHashwaniarguedthattherequirementforthearbitratorstobemembersoftheIsmailicommunitywasdiscriminatoryagainstpotentialnon-Ismailiarbitratorsongroundsofreligionorbelief.OnthisbasisMrHishwaniappliedforanorderundersection18oftheEnglishArbitrationAct1996thatSirAnthonybeappointedassolearbitrator.AtfirstinstanceMrHashwanisapplicationwasdismissedtheEnglishHighCourtholdingthatarbitratorswerenotemployeesandthatthereforetheRegulationsdidnotapply.AccordinglythearbitratorsweretobeappointedinaccordancewithArticle8andthereforetobedrawnfromtheIsmailicommunity.HoweveronappealtotheCourtofAppealthedecisionoftheEnglishHighCourtwasreversed.TheCourtofAppealheldthatthebroaddefinitionofemploymentcontainedintheRegulationswasintendedtocoveralltypesofemploymentincludingtheprovisionofservicesunderanyformofcontract.Theprecisenatureofthearbitratorspositionwhetherasanemployeeinthetraditionalsenseorasaself-employedcontractorwasheldtobeirrelevant.Therealitywasthatarbitratorsexpectedtobepaidfortheirservicesandsuchexpectationcouldonlybesupportedonthebasisthatacontractofemploymenthadcomeintoexistencebetweenanarbitratorandeachoftheparties.TheCourtofAppealheldthatapersonwhoenteredintoacontractunderwhichhewastoobtainsuchaserviceasthoseprovidedbythearbitratorswastobeconsideredanemployerandthatthepersonengagedtoprovidethoseservicesanemployee.GiventhatArticle8oftheAgreementalsoprovidedforthedisputetobedecidedonthebasisofEnglishlawtheCourtofAppealheldthatitcouldnotbesaidthattherewasanynecessityforthetribunaltobeIsmailiinordertodischargeitsfunction.ItfollowedthatonthefactsofthecasethegenuineoccupationalrequirementexemptionoftheRegulationsdidnotapply.HavingconcludedthattheselectioncriterionunderthearbitrationagreementwascontrarytotheRegulationstheCourtofAppealwentontoconsiderwhetheritwaspossibletosevertherequirementthatthearbitratorsberespectedmembersoftheIsmailicommunityfromthepartiesarbitrationagreementtherebypreventingthepartiesagreementtoarbitratefromfailinginitsentirety.OnthisissuetheCourtofAppealheldthatwhilstitwaspossibletodeletethelastsentenceofArticle81oftheAgreementwhichcontainedtherestrictionwithoutrenderingtheremainderoftheclauseunworkabledoingsowouldrendertheclausesubstantiallydifferentfromwhatthepartieshadoriginallyintended.TheCourtofAppealconsideredthatthepartiesagreementthatthearbitratorsbedrawnfromtheIsmailicommunitywasanintegralpartoftheiragreementtoarbitrateandcouldnotbedisregarded.Inconsequencethearbitrationagreementwasheldtobevoidinitsentirety.ByclassifyingtherelationshipbetweenthepartiesandthearbitratorsasoneofemploymentthedecisionhaspotentiallyfarreachingconsequencesbothfortheenforcementofinternationalarbitrationawardsinEnglandandthevalidityofarbitrationagreementsprovidingforanEnglishseatofarbitration.ImplicationsforenforcementTheCourtofAppealinthecaserenderedvoidanarbitrationagreementwhichcontainedarestrictiononthereligiousbeliefofanarbitratorbecausesuchanagreementcontravenedlocaldiscriminationlegislationandpublicpolicy.ConsequentlypartiesmightinthefutureseektoarguethatawardsrenderedbyarbitraltribunalsselectedinaccordancewithsimilarrestrictionsalsooffendEnglishpublicpolicy.SuchawardsrenderedbytribunalssittinginanotherjurisdictionmightthereforefaceenforcementdifficultiesinEnglandpublicpolicybeingoneofthelimitedgroundsuponwhichtheEnglishcourtscanrefusetoenforceinternationalarbitrationawardsprovidedforinthe1958NewYorkConventionontheRecognitionandEnforcementofforeignArbitralAwards.