Origen Corporation (Private) Limited v Delta Operations (Private) Limited and Ian Donovan

HH 101-2005

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Case Details

Court

Harare High Court

Date

23 November 2005

Citation

HH 101-2005

Neutral Citation

[2005] ZWHH 101

Outcome

unknown

Case Type

Application

Bench

Presiding

Kamocha J

Full Bench

Kamocha J

Areas of Law

Arbitration LawCommercial LawContract Law

Keywords

Arbitral AwardContractual PenaltiesPublic PolicySpecific Performance

Key Issues

{"issue_text":"Whether the arbitral award should be set aside for being grossly unreasonable and in conflict with public policy","issue_type":"law","dispositive":"yes","related_facts":"Arbitrator ignored penalty clause, gave no reasons for Order B, awarded replacement cost at later date"}
{"issue_text":"Whether the arbitrator properly considered the contractual penalty provision","issue_type":"law","dispositive":"no","related_facts":"Section 4 of Contractual Penalties Act, $75,000 per tonne penalty clause"}
{"issue_text":"Whether the arbitrator gave adequate reasons for Order B of the award","issue_type":"procedural","dispositive":"no","related_facts":"Article 31(2) UNCITRAL Model Law requirement for reasons"}

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Facts of the Case

Background

The parties entered into a barley exchange contract where Delta would deliver feed-grade barley to Origen in mid-2002, and Origen would return brewing-grade barley in October 2002. Delta delivered 2019.28 tonnes but Origen only returned 1127.848 tonnes, leaving a shortfall of 891.432 tonnes. The dispute went to arbitration where the arbitrator ordered specific performance or alternatively payment of the cost of replacement barley at a later date.

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