DB v DLJ [2016] EWHC 324 (Fam)

Mostyn J reviews the law on challenging arbitral awards, mistake and Barder events.

Facts

  • H made an application for notice to show cause as to why an order should not be made in the terms of an arbitral award made by Gavin Smith.
  • Following the making of the award, a planning application that the parties had assumed would be successful failed, reducing the value of one of the properties.

Held

  • Mostyn J drew the distinction between mistake and supervening event undermining the outcome. The decision highlights when it is appropriate to rely on each, and the differences in the applicable law.
  • The progress of the planning application could have been determined from the local authority at the time the award was made, and therefore the factor fell under the umbrella of mistake and not supervening event. W’s resistance of the order on the basis of mistake failed as she could have discovered the position on the planning application with due diligence.
  • Mostyn J also noted that, while the ability to challenge family arbitral awards is slightly wider than in civil proceedings, it is exceptionally limited. His Lordship did provide particular praise of Mr Smith’s detailed award, and provided significant judicial encouragement for the increased use of arbitration, as well as outlining a fast-track procedure for converting awards into orders.