Meaning
Technical error or omission in the conduct of a legal case that violates the rules of the court or the agreement of the parties. A procedural defect can range from a failure to meet a filing deadline to an improper method of selecting an arbitrator. If the error is serious enough, it may provide grounds for setting aside the final decision.
Validity Challenge
The losing party often points to these mistakes when trying to stop the enforcement of an award. If they can show that the tribunal failed to follow the agreed-upon procedure, the court may declare the entire proceeding invalid.
Materiality Test
Not every small mistake will result in the cancellation of a judgment. Courts usually require proof that the error actually affected the outcome of the case or deprived a party of a fair hearing.
Waiver Doctrine
A party that notices an error but continues with the case without complaining may lose the right to challenge it later. This rule prevents participants from keeping a defect in reserve to use only if they lose the final decision. The law encourages the early correction of mistakes to keep the process moving forward.
This maintains the finality of the legal system.
