RAV BAHAMAS LTD V THERAPY BEACH CLUB INC (BAHAMAS)

[2021] UKPC 8, Privy Council, Lord Hodge, Lord Hamblen, Lord Leggatt, Lord Burrows and Lord Stephens, 19 April 2021

Arbitration – Serious irregularity – Breach of rules of natural justice – Failure to deal with all issues – Substantial injustice – Arbitration Act 2009 (Bahamas), section 90 – Arbitration Act 1996, section 68

In December 2011 RAV Bahamas Ltd (RAV) leased land on the island of Bimini to Therapy Beach Club Inc (Therapy) for the building and operation of the Sakara Beach Club. The initial lease was for three years, renewable by Therapy with six months’ notice for a further three years subject to the parties agreeing rent for the renewal period. Therapy contended that the work had not been completed by RAV, and RAV commenced proceedings in the Bahamas arguing that the lease was illegal under local law.