Kansa General Insurance Company Ltd. v. Bishopsgate Insurance Plc - Q.B.D. (Com.Ct.) (Hirst J.) - 12 November 1987

Application for arbitrators to state further reasons under section 1(5) Arbitration Act 1979 - Whether court can be referred to submissions of law not mentioned in the award

This was an application for an order pursuant to Section 1(5) of the Arbitration Act 1979 directing arbitrators to state further reasons for their award. One of the matters under consideration was the extent to which, if at all, it was permissible for the court to refer to the submissions made to the arbitrators which were not discernible in the award itself. The respondents to the application submitted that it was not permissible for the court to refer to such submissions, having regard to Universal Petroleum Co. Ltd. v. Handels und Transport Gesellschaft m.b.H. [1987] 1 Lloyd’s Rep. 517. They argued that in the much more stringent climate of today, as betokened in the Universal Petroleum case, orders for further reasons would have been refused in either cases at first instance, viz. The Gay Fidelity [1982] 2 Lloyd’s Rep. 458.