Meaning
Legal challenges to arbitration awards assert that a tribunal denied a party a fair hearing or acted with bias during the proceedings. Raising natural justice objections serves as a tool to contest an unfavorable decision before national courts. These arguments are strictly limited to procedural fairness and do not allow for a re-examination of the substantive legal merits.
Procedural Failure
Failing to give a party adequate notice of a hearing or preventing them from presenting their case represents a classic procedural error. The right to be heard requires that both sides have an equal opportunity to address the tribunal. If an arbitrator reviews evidence submitted in secret, the entire proceeding is compromised.
Prejudicial Impact
Demonstrating that the procedural error caused actual prejudice to the complaining party is a necessary requirement in most jurisdictions. Minor technical errors that do not affect the outcome of the dispute are insufficient to overturn an award. The applicant must prove that the unfairness had a material effect on the decision.
Nullification Strategy
Securing a judgment to set aside the award results in the nullification of the tribunal’s decision. This outcome forces the parties to either restart the arbitration from the beginning or litigate the matter in court. This result represents the ultimate remedy for procedural injustice.