4. Finality and binding effect
The purpose of arbitration is to produce a final and binding determination of the parties’ dispute. An award made under a valid arbitration agreement is binding on the parties and on persons claiming through them. It may also give rise to res judicata, meaning that the same matters cannot generally be re-litigated in later proceedings.
Once the tribunal has decided an issue and made an award, it is generally functus officio in relation to that issue. This means that the tribunal’s authority over that matter has come to an end. It cannot reopen or revise its decision except in the limited circumstances allowed by the Arbitration Ordinance (Cap. 609), such as correction, interpretation, or the making of an additional award.
There is no general right of appeal on the merits of an arbitral award. The court will not review the case simply because one party says the tribunal made a wrong decision. The principal recourse against an award is an application to set it aside under section 81. The grounds for setting aside are limited and mainly concern matters such as jurisdiction, procedural fairness, the validity of the arbitration agreement, and public policy.
An award will generally remain final and binding even if the tribunal has made an error of fact or law. The court does not have jurisdiction to set aside an award merely because there is an error on the face of the award.
Print
Email
