the republic of trinidad and tobago in the high court...
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THE REPUBLIC OF TRINIDAD AND TOBAGO
IN THE HIGH COURT OF JUSTICE
CV2012-00046
THE WEST INDIES CRICKET BOARD INC.
Claimant
AND
THE WEST INDIES PLAYERS’ ASSOCIATION
Defendant
JUDGMENT
Before the Honourable Mr. Justice A. des Vignes
Appearances:
Mr. Alvin Fitzpatrick (S.C.) and Mr. Derek Ali for the Claimant
Mr. Douglas Mendes (S.C.) and Mrs Denise T. Haynes for the Defendant
Introduction
1. By Fixed Date Claim Form filed on 4th
January 2012, the West Indies Cricket Board
Inc. (hereinafter referred to as “the WICB”) instituted these proceedings against the
Defendant, the West Indies Players’ Association (hereinafter referred to as “the
WIPA”) seeking, inter alia, orders of this Court to set aside and/or remit the Final
Award of Seenath Jairam, S.C, (hereinafter referred to as "the Arbitrator") dated 7th
December 2011 made pursuant to a Memorandum of Understanding (hereinafter
referred to as “the MOU”) between the WICB and the WIPA.
2. The WICB is responsible for the administration of West Indies cricket throughout the
West Indies and the WIPA is the player representative body of West Indian cricketers.
3. On 25th
January 2012, the WICB filed an Amended Fixed Date Claim supported by an
affidavit of Alana Medford of even date.
4. On 15th
March, 2012, the WIPA filed an affidavit of Dinanath Ramnarine in
opposition.
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5. On 19th
March 2012, I gave directions for the filing of written submissions by the
parties. In pursuance of this Order, the WICB filed written submissions on 16th
April
2012, the WIPA filed written submissions on 8th
May 2012 (with its bundle of
authorities separately filed on 21st June 2012) and the WICB filed reply submissions
on 15th
May 2012.
6. On 15th
November 2012, I heard oral submissions by Counsel for both parties at the
conclusion of which I granted permission to the WIPA to file and serve written
submissions on Article XI, Section 4 (b) of the Collective Bargaining Agreement,
(hereinafter referred to as “the CBA”), with permission to the WICB to file written
submissions in reply. On 7th
January 2013, the WIPA filed its written submissions on
this Article and on 14th
January 2013 the WICB filed its written submissions in reply.
Background
7. By letter dated 28th
January 2010, in accordance with the dispute resolution process as
outlined in the CBA the WIPA issued a notice of dispute to the WICB in relation to
breaches of Article VI (c) and (d) of the MOU. Article VI of the MOU reads as
follows:
(a) Regional Programme of Matches
The WICB will set out, annually, for the period October 1st to
September 30th
, a programme for the regional cricket competitions.
(b) Overseas Programme of Matches
(i) The WIPA acknowledges that the International Cricket Council (the ICC)
has determined a forward programme of international cricket, which
contemplates the WICB sending the West Indies Cricket Team
overseas to play certain matches/series. A copy of the overseas
programme current as at the date of this MOU is set out in Schedule
D.
(ii) The parties acknowledge and agree that the ICC and/or the ICC Member
Countries are entitled to vary the overseas programme during the
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term in accordance with their respective powers. The WICB agrees to
consult with the WIPA in relation to any proposed variations to the
overseas programme.
(iii)The WIPA acknowledges that the WICB is required to comply with the
overseas programme (as amended from time to time) by selecting and
sending teams to participate in the relevant matches/ series.
(iv) The WICB will not agree to increase the number of matches scheduled to
be played under the overseas programme during the term without
reaching prior agreement with WIPA.
(c) Finalisation of Programmes
(i) The WICB and the WIPA will agree on an annual basis, prior to WICB
finalising arrangements relevant to the regional programme and the
overseas programme (including dates, locations, travel and
accommodation arrangements). The WICB will provide the WIPA
with reasonable opportunity to consider the proposed arrangements
prior to adoption.
(ii) The WICB and the Territorial Boards reserve the right to vary the dates
and location of matches played as part of the competitions referred to
in the regional programme but will agree with the WIPA before doing
so.
(iii)The WICB reserves the right to agree to changes in the dates and
locations of matches played as part of the competition referred to in
the overseas programme but the WICB will agree with the WIPA
before doing so.
(iv) The WICB will ensure that it does not agree to changes in the
programmes referred to in Articles VI (a) and VI (b) which fetter the
Players rights under Article VIII.
(d) Minimum Standards
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(i) The WICB and the WIPA agree that there should be minimum standards
pertaining to facilities used by territorial and WICB teams as set out
in Schedule E.
8. Pursuant to Article XI of the CBA, the parties engaged in negotiation and mediation,
which failed to resolve the dispute. As a result, the parties, by letter dated 18th
November 2010, appointed Seenath Jairam S.C. as Arbitrator in the matter.
The WIPA’s claim in the Arbitration proceedings
9. The WIPA claimed that the WICB breached the agreement between the parties. They
averred that the plain and ordinary meaning of Article VI of the MOU suggests that:
1. The WICB must provide the WIPA with reasonable opportunity to consider
proposed arrangements prior to adoption; and
2. On issues identified in Article VI of the MOU, the Respondent cannot proceed
without the agreement of the WIPA.
Particulars of the breach alleged by the WIPA
10. The WIPA alleged that for the period 2009 to 2010, in breach of Article VI (c) (i), the
WICB failed to provide the annual schedule within reasonable time for the WIPA’s
consideration and approval. Additionally, the WICB, without the agreement of the
WIPA, arranged and proceeded to implement the 2009 – 2010 schedule.
11. The WIPA also alleged that on or about 22nd
September 2009, the WICB provided the
WIPA with the proposed schedule for the period October 1st 2009 to September 30
th
2010. This was in contemplation of a meeting to discuss the said schedule. The WIPA
alleged that the proposal did not contain adequate information to allow the WIPA to
properly respond to the proposal. The WICB failed to provide the WIPA with a
reasonable opportunity to consider the proposed arrangements prior to adoption. On
16th
November 2009, the WICB provided the WIPA with a second schedule for the
above mentioned period. Several variations were made to this schedule, which was
eventually finalised by the WICB without the agreement of the WIPA.
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12. With regards to the Regional four day tournament, the WICB unilaterally changed
the format of the tournament. Despite the WIPA’s complaints, the WICB finalised the
tournament without the prior agreement of the WIPA. In breach of Article VI (c) and
(d), the WICB proceeded to implement the varied schedule without agreement of the
WIPA on dates, location, travel and accommodation arrangements and the minimum
standards required by Article VI (c) and (d).
13. With respect to the West Indies under 19 tournament, the WICB breached Article
VI of the MOU because they did not consult the WIPA prior to finalising
arrangements.
14. With regards to the West Indies A team, the WICB did not provide the WIPA with
the opportunity to consider and approve the arrangements and contracts for the team.
The WIPA was therefore unable to negotiate terms and conditions of contract for the
players and the remuneration for the players.
15. With respect to the international series, the WIPA alleged that the WICB finalised
the itinerary without the WIPA’s agreement and increased the number of overseas
matches to be played without prior agreement of the WIPA. The WIPA also alleged
that the WICB inserted an additional T20 international into the schedule. The WIPA
was only made aware of this addition via e-mail and as such they were deprived of the
opportunity to negotiate fees due to the players with respect to the additional match.
The WICB also varied the location and venues for the 2010 home series against South
Africa, in default of agreement with the WIPA.
16. With regards to the Caribbean T20 Series 2010, the WICB arranged and
implemented the details regarding dates, location, travel and accommodation in
default of discussion or agreement with the WIPA. The WIPA was deprived of the
opportunity to negotiate fees for the players and was also faced with difficulty
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because they had indicated to the WICB their intention to host T20 Club Champions
during the period July/August 2010.
17. With regards to the ICC T20 World Cup, the WICB did not provide the WIPA with
information pertaining to these games and the WIPA was therefore deprived of the
opportunity to deliberate on the arrangements for these games.
18. The WIPA also alleged that the WICB has failed in ensure that the Minimum Safety
Standards, which were agreed by the WIPA and the WICB, as set out in Schedule E of
the MOU, have been met at all times.
19. As a result of the WICB’s breaches of Article VI (c) and (d) the WIPA alleged that
the WICB has frustrated the intent and purpose of the CBA. The WIPA alleged that,
as a consequence, they have endured both pecuniary and non-pecuniary losses
including inability to fulfil its obligations to its members in negotiating for appropriate
terms and conditions.
20. The WIPA also asserted that the WICB does not have the power to unilaterally
determine the terms and conditions under which the West Indies Cricket Teams play,
but rather they ought to agree same with the WIPA before scheduling.
21. As a result of the breaches alleged in the WIPA’s Point of Claim, the WIPA sought
the following reliefs:
1. Aggravated damages in the sum of USD$ 422,216,.00;
2. A Declaration that the WICB had breached Article VI of the MOU;
3. An Order that the WICB refrain from future breaches of the MOU and the CBA;
4. An account of all the revenue earned by the WICB and details of commercial
arrangements for the additional T20 match in the Home Series against South
Africa in 2010;
5. Costs and interest; and
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6. Such further and or other reliefs the Arbitrator deems fit.
WICB’s Defence in the Arbitration proceedings
22. The WICB submitted that they made several attempts to engage WIPA on the
suitability of venues for the matches for the 2009/2010 schedule. No complaints were
ever made to the WICB by the WIPA on the venues and, as such, the WICB settled
the venues for the matches.
23. With regards to the Regional One Day Tournament, WICB contended that the
schedules for these matches were agreed between the parties after a consultative
process.
24. With regards to the Regional Four Day Tournament, the WICB contended that the
WIPA was informed of the schedule for the tournament but did not act promptly in
responding to the information put forward by the WICB and that the WICB acted in
accordance with the spirit and intent of Article VI (c) of the MOU.
25. With regards to the 2009/2010 under 19 Tournament, WICB contended that the
WIPA knew of the schedule for the tournament and did not raise any issue with it.
26. With regards to the 2009/2010 WI A Team Tours, the WICB contended that the
WIPA was aware that the West Indies would play several matches against Zimbabwe
when the latter team toured the West Indies. The WIPA however made no complaint
about the fixtures.
27. With regards to the 2009/2010 Caribbean Twenty 20 tournament, the WIPA knew
that the tournament was scheduled for October 2010. As at January 28th
2010, no
schedule for this tournament had been drafted.
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28. With regards to the 2009/2010 International Cricket Schedule, the WIPA was made
aware of the schedule by e-mail dated 22nd
September 2009, to which Mr Ramnarine
of the WIPA agreed at a meeting on 12th
October 2009. When the updated schedule
was sent to the WIPA on 16th
November 2009, no complaints were made with regards
to the same.
29. With regards to the ICC T20 World Cup the WICB contended that the schedule for
this tournament is set by the International Cricket Council (ICC) and the WIPA was
well aware of the schedule in advance of the tournament. In addition, they contended
that Article VI of the MOU does not apply to ICC Tournaments.
30. The WICB rejects the WIPA’s contention that the WICB failed to provide the WIPA
with the annual schedule within a reasonable time for its consideration and approval
in breach of Article VI (c) and (d). They denied that the WIPA has suffered any loss
and damage as alleged and further denied that the actions of WICB have prevented the
WIPA from fulfilling its obligations to its membership. They say that the WIPA is not
entitled to any of the reliefs claimed. At paragraph 63 of the WICB’s Points of
Defence, they averred that the schedule of cricket was known to WIPA by its own
admission by way of publication in the press, which was sufficient for WIPA to look
after the interests of its membership. As such they claimed that the WIPA cannot
benefit from its own shortcomings.
The Arbitration Award
31. On 7th
December 2011, the Arbitrator ruled that WICB breached Article VI of the
MOU and ordered that the WICB give a full and complete account of all the revenue
earned by the WICB, including details of all commercial arrangements for the
additional T20 match in the Home Series against South Africa in 2010 as well as
Caribbean T 20 in July 2010. The Arbitrator also made an award that WICB pay
WIPA the following sums:-
(a) US$728,000.00 representing loss of earnings for the Regional 4 Day
Tournament
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(b) A sum equivalent to 40% of the gross receipts after an account is given in the
additional T 20 Match in the Home Series against South Africa in 2010 together
with a sum equivalent to the usual fees paid to players in Caribbean T20
matches.
(c) The sum of US$100,000.00 for loss of sponsorship opportunity.
(d) The sum of US$1916.00 being the cost of mediation
(e) The sum of US$20,000.00 for nominal damages for loss of income for WIPA
T20
(f) The sum of US$114,320.00 for WIPA legal fees to date.
(g) WICB do pay 8/10 of the full costs of the arbitration and to refund WIPA 8/10 of
all fees paid to the Arbitrator for the arbitration and award, inclusive of the costs
of and occasioned by the adjournment.
(h) WICB do pay interest on the sums payable at a rate of 12% per annum from the
date of the award until payment.
The present Claim
32. In the course of oral arguments, an issue was raised by the WIPA regarding the
Court's jurisdiction to determine this case and the WICB pointed to Article XI section
4(b) of the CBA to support the Court's jurisdiction to review errors of law. Counsel
for the WIPA then sought an opportunity to consider the effect of that Article.
Directions were therefore given for both parties to file written submission on this
issue, on which I must first rule.
Effect of Article XI, Section 4(b) of the CBA
33. Article XI, Section 4(b) of the CBA provides that:
“Except on a point of law, the decision of the arbitration tribunal shall be final
and binding upon both parties”
34. In its submissions filed on 7th
January 2013, the WIPA submits that the effect of this
Article is that the arbitrator's award is not binding on the parties on points of law.
Based on the terms thereof, the parties agreed that questions of law decided by the
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Arbitrator are not final and binding and therefore, the Court is not deprived of
jurisdiction to review errors of law, even if the point of law which was decided
erroneously was expressly referred to the Arbitrator for determination. However, the
Court's jurisdiction to review points of law is still limited to those errors of law which
appear on the face of the award.
35. In support of this submission, the WIPA relied on the Privy Council decision of
Champsey Bhara & Co v Jivraj Balloo Spinning and Weaving Co (J.C.) [1923]
AC 480, 497-498 where it is stated that:
“An error of law on the face of the award means…that you can find in the award
or a document actually incorporated thereto, as for instance a note appended by
the arbitrator stating the reasons for his judgment, some legal proposition which
is the basis of the award and which you can then say is erroneous. It does not
mean that if in a narrative a reference is made to a contention of one party that
opens the door to seeing first what that contention is, and then going to the
contract on which the parties' rights depend to see if that contention is sound.”
36. Accordingly, the WIPA submitted that, on the face of the Award, the Arbitrator did
not devote any time in his ruling to exploring the true meaning of Article VI of the
MOU. After examining the arguments of the parties the Arbitrator stated his award.
As such, the WIPA submitted that the Court cannot speculate the reasoning of the
Arbitrator to determine if there was an error on the face of the award. Therefore, the
Court has no jurisdiction to review the award of the Arbitrator.
37. In its submissions in reply filed on 14th
January 2013, the WICB submitted that this
Article sets out the parties' agreement that the Arbitrator's award shall not be binding
on points of law. Therefore, absent any restrictions on the points of law to be
reviewed, it is the expressed intention of the parties that the award may be set aside
for error of law, whether appearing on the face of the Award or otherwise and
notwithstanding that the error arose in answering a specific question of law referred to
the Arbitrator.
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38. In any event, the WICB relies on its earlier submissions to the effect that "error on the
face of the award" means that the award, or a document actually incorporated therein,
includes some legal proposition which is the basis of the award and is erroneous.
Therefore, it is sufficient to show that the Arbitrator erred in his construction of a
contractual term or terms and that his reasoning and/or findings were based on some
erroneous legal proposition. In their opinion, the Article VI of the MOU is patently
incorporated in the award and, if the Arbitrator must have interpreted Article VI to
reach his conclusions, the Court can consider if his interpretation is correct as a matter
of law and, if it is not, may set it aside.
39. On this issue, I am of the opinion that the wording of Article XI, Section 4(b) of the
CBA is clear and unambiguous. The jurisdiction of the court is limited to reviewing
the Arbitrator’s decision only on points of law. Where a ruling is on a point other than
a point of law, the decision of the Arbitrator is final and cannot be reviewed by the
Court. I am not persuaded that the Court is limited to reviewing errors of law that
arise on the face of the Award. There is nothing in the CBA that limits the Court’s
power to reviewing errors of law on the face of the award. Accordingly, provided that
the issues raised by the WICB concern the Arbitrator’s interpretation of points of law,
this court is sufficiently vested with authority to review the decision of the Arbitrator.
40. In any event, I also accept the submissions of the WICB that Article VI is clearly and
expressly incorporated into the Award and since the Arbitrator must have interpreted
Article VI in order to arrive at his findings, this court is entitled to consider if his
interpretation is correct as a matter of law and, if it is not, the Court may set it aside.
The Reliefs claimed by the WICB
(a) The WICB seeks an order pursuant to the inherent jurisdiction of the Court that the
Award be set aside on the ground of error of law in the construction of Article VI of the
MOU;
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(b) An order pursuant to Section 19 (2) of the Arbitration Act and/or the inherent
jurisdiction of the Court that the Award be set aside for error on the face of the Award
and/or for technical misconduct by reason of the Arbitrator failing to decide all of the
matters which were referred to him;
(c) An order pursuant to Section 19 (2) of the Arbitration Act and/or the inherent
jurisdiction of the Court that the Award be set aside for the technical misconduct of the
Arbitrator in determining the parties' rights not only under the MOU upon which the
Arbitration had proceeded but under other alleged agreements which were not pleaded
and/or in respect of which there was no evidence, alternatively no evidence fairly
adduced;
(d) An order pursuant to Section 19 (2) of the Arbitration Act and/or the inherent
jurisdiction of the Court that the Award be set aside for error on the face of the Award
by reason of the Arbitrator coming to a decision based on findings of fact which were
perverse and/or in respect of which there was no evidence to support such findings;
(e) An order pursuant to the inherent jurisdiction of the Court that the Award be set aside
for an error of law appearing on its face in respect of the award of damages;
Alternatively,
(f) An order pursuant to section 18 of the Arbitration Act and/or the inherent jurisdiction of
the Court that the Award be remitted for the reconsideration by the Arbitrator of
WIPA’s claim and WICB’s defence in accordance with the directions of the Court on
the proper construction of Article VI and for such consequential amendments as might
be necessary;
(g) An order pursuant to section 18 of the Arbitration Act and/or the inherent jurisdiction of
the Court that the Award be remitted for the reconsideration by the Arbitrator of the
WICB’s list of issues submitted to the Arbitrator on June 24, 2011, namely:
(i) Whether the failure of two parties to reach agreement can give rise to an action
for breach of a term of contract that requires agreement;
(ii) Whether an alleged breach of Article VI of the MOU, being a term as described
at (i) above, is actionable be either party;
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(iii) Whether there are any consequences that are contained in either the CBA or
MOU or otherwise that flow from a failure to agree as prescribed by Article VI;
in accordance with the directions of the Court on these issues and for such
consequential amendments as might be necessary.
(h) An order pursuant to section 18 of the Arbitration Act and/or the inherent jurisdiction of
the Court that that the Award be remitted for the reconsideration by the Arbitrator of
WIPA’s claim to be entitled to damages with respect to the Regional 4 Day Schedule for
2010 in accordance with the directions of the Court on WIPA’s entitlement to recover
under such claim and for such consequential amendments as might be necessary;
(i) An order pursuant to section 18 of the Arbitration Act and/or the inherent jurisdiction of
the Court that the Award be remitted for the reconsideration by the Arbitrator of
WIPA’s claim to be entitled to:
(i) An account of the revenue earned by WICB in relation to an additional T20
match held in the home series against South Africa in 2010 and the Caribbean
T20 competition held in July 2010;
(ii) The payment of monies out of such revenue.
in accordance with the directions of the Court on WIPA's entitlement to recover
under such claim and such consequential amendments as might be necessary.
(j) An order pursuant to section 18 of the Arbitration Act and/or the inherent jurisdiction of
the Court that the Award be remitted for the reconsideration by the Arbitrator of
WIPA’s claim to be entitled to damages in respect of a three year sponsorship contract
in accordance with the directions of the Court on WIPA's entitlement to recover under
such claim and for such consequential amendments as might be necessary;
(k) An order pursuant to section 18 of the Arbitration Act and/or under the inherent
jurisdiction of the Court that the Award be remitted for the reconsideration by the
Arbitrator of WIPA’s claim to be entitled to damages for the loss of its T20 Tournament
in 2010 in accordance with the directions of the Court on WIPA's entitlement to recover
under such claim and for such consequential amendments as might be necessary;
(l) An order pursuant to section 18 of the Arbitration Act and/or the inherent jurisdiction of
the Court that the Award be remitted for the reconsideration by the Arbitrator of his
Award with respect to the costs of the mediation process which preceded the
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Arbitration, the legal fees incurred by WIPA, the cost of the Arbitration and interest in
light of the directions of the Court on the matters set out above and for such
consequential amendments as might be necessary.
The Grounds
41. The WICB challenged the Award on 8 grounds and I propose to analyse the
submissions of the parties under these headings. They are as follows :
I. Construction-- the Arbitrator failed to construe Article VI of the MOU in accordance
with the law or at all;
II. Failure to adjudicate-- The Arbitrator failed to consider or decide all matters referred to
him;
III. Outside the Reference and Jurisdiction-- The Arbitrator made findings and awarded
damages based on matters which did not fall for determination under the reference and
therefore acted without jurisdiction;
IV. Causation-- The Arbitrator erred in law in awarding damages which were not caused by
WICB's alleged breach of Article VI of the MOU;
V. WIPA's standing-- The Arbitrator erred in law by awarding damages to WIPA in respect
of the alleged losses of third parties;
VI. Best Evidence and Substantive Procedural Irregularity-- The Arbitrator erred in law
and/or misconducted the proceedings by failing to apply the best evidence rule and/or
endorsing substantive procedural irregularity giving rise to unfairness;
VII. Speculative Damages Award-- The Arbitrator erred in law in awarding damages which
were entirely speculative;
VIII. "Nominal Damages"-- The Arbitrator erred in law in considering that $10,000 could be
"nominal damages".
However, I propose to commence my analysis with Ground II, Failure to adjudicate.
Analysis of Grounds
II. Failure to adjudicate
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42. In his Award, the Arbitrator referred to the Lists of Issues provided by the parties and
expressly referred to Issues (i), (ii) and (iii) of WICB’s issues at paragraph 1.10.
Thereafter, at paragraph 22, he stated as follows:
"[22] Having heard and duly weighed and considered the Points of Re-
Amended Claim, Points of Defence, Points of Reply, the evidence of the parties
(both written and oral) and their respective submissions and their several
allegations, in my judgment issues (i) to (v) inclusive of WIPA's List of Issues set
out at paragraph [1.10] hereof are answered in the affirmative and issue (iv) of
WICB's List of Issues set out under paragraph [1.10] hereof is also answered in
the affirmative. The answer to issue (v) of WICB's List of Issues is in the
negative. In the circumstances, WICB's Issues (i), (ii) and (iii) are otiose on the
basis , inter alia, that there is no counterclaim by WICB against WIPA and no
evidence on which I can rely to determine these issues. Since a court of law does
not decide academic issues, then I too as Arbitrator must take my guidance
accordingly. I therefore decline to answer these issues in these circumstances. It
is my considered view that both the CBA and MOU and in particular the
provisions relied upon herein create serious and binding obligations between
both parties and they are not to be trifled with since a breach of them may cause
serious (and sometimes irreparable)) damage...."
43. WICB submitted that issues (i), (ii) and (iii) were not otiose or academic since it was
crucial for the Arbitrator to determine whether or not Article VI was enforceable or
void for uncertainty. Accordingly, on the face of the Award, the Arbitrator failed to
decide all the matters referred to him rendering the Award bad and liable to be set
aside or remitted for technical or procedural misconduct.
44. In its written submissions in reply, the WIPA submitted firstly that this Court has no
jurisdiction to consider this issue on the grounds that the Court has no inherent
jurisdiction to set aside the Award. However, having regard to my earlier finding that
this Court has the jurisdiction to review the Award if there is an error of law contained
therein, I also reject this submission.
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45. The WIPA also sought to argue that there was no failure to adjudicate by the
Arbitrator since his Award is evidence of his rejection of the WICB’s contention that
Article VI is void for uncertainty and unenforceable. They also argued that since the
WICB did not put any evidence before the Arbitrator that Article VI is void for
uncertainty, they could not now claim that the Arbitrator's statement that he declined
to answer constitutes misconduct and that the issues raised by the WICB were indeed
academic.
46. However, in his oral submissions before me on 15th
November 2012, Senior Counsel
for the WIPA conceded that he did not understand what the Arbitrator meant when he
referred to the issues as otiose.
47. In my opinion, these issues raised by the WICB ought not to have been regarded by
the Arbitrator as academic or otiose. In fact, the underpinning for these issues is to be
found in its Points of Defence at paragraph 35 where it is made abundantly clear that
the WICB considered that these issues were at the core of the matters to be
determined by the Arbitrator:
"In any event, the WICB contends that there is no action known to law as
"failure to agree". The result therefore is that this complaint is misconceived
and/or without merit and must be struck out. This is a legal submission which the
WICB submits should be determined as a preliminary issue and the appropriate
directions given for its full ventilation."
48. I also do not accept the WIPA's submission that the Arbitrator impliedly adjudicated
on the issues and rejected the WICB's contentions. Such an interpretation would be in
clear conflict with the express language used by the Arbitrator when he expressly
declined to answer these issues. Further, I do not agree that the determination of these
issues required the WICB to make a counterclaim or to adduce evidence. The issue
was squarely raised in the Points of Defence and the determination thereof required
the Arbitrator to construe the meaning of Article VI without regard to the evidence.
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49. Accordingly, I find that the Arbitrator, by declining to determine the issues raised by
the WICB, has misconducted the proceedings.
50. Sections 18 and 19 of the Arbitration Act confer on the Court the power to remit any
matter to the reconsideration of the Arbitrator or to set aside an award.
"18. (1) In all cases of reference to arbitration the Court may from time to
time remit the matters referred, or any of them, to the reconsideration of
the arbitrators or umpire.
(2) Where an award is remitted, the arbitrators or umpire shall, unless
the order otherwise directs, make their award within three months after
the date of the order.
19. (i) Where an arbitrator or umpire has misconducted himself or the
proceedings, the Court may remove him, but before making any such
order the arbitrator or umpire may, if the Court so directs, be given an
opportunity of showing cause against such order.
(2) Where an arbitrator or umpire has misconducted himself or the
proceedings, or an arbitration or award has been improperly procured,
the Court may set the award aside."
51. It is well recognised that the court may remit an Award where there has been
misconduct by the Arbitrator.1 Further, in King v. Thomas McKenna Ltd,
2 Lord
Donaldson of Lymingon M.R. expressed the opinion that the jurisdiction to remit
extended beyond the four traditional grounds to any cases where some aspect of the
dispute had not been considered and adjudicated upon as fully or in a manner which
the parties were entitled to expect and it would be inequitable to allow any award to
take effect without some further consideration by the Arbitrator.
1 Halsbury's Laws of England, (3rd Ed.) Vol. 2 para. 121 2 [1991] 2 QB 480 at 491 (C.A.)
Page 18 of 40
52. The question whether in any particular case where an Arbitrator has been guilty of
misconduct, the Court will remit the award to his reconsideration or will set it aside
depends on the nature of the misconduct.
53. At this stage of my consideration of the grounds of challenge raised by the WICB,
however, I propose to reserve my decision as to whether to remit the award or to set it
aside on the ground of the misconduct of the Arbitrator to the conclusion of my
judgment.
I. Construction
WICB's submissions
54. The WICB submitted that on the face of the Award the Arbitrator failed to apply the
relevant principles of contractual interpretation to the MOU and so he committed an
error of law, thereby justifying the setting aside of his Award.
55. In construing Article VI, the Arbitrator should have construed the whole Article
objectively to come up with a workable meaning which is internally consistent. In so
doing, he should have referred only to the matrix of facts that existed at the time that
the MOU was entered into and not by reference to any evidence of what was said or
done after it was made.
56. Further, the Arbitrator ignored the difficulties and the absurdity that would result from
a literal interpretation of the Article. In his Award, the Arbitrator demonstrated that he
considered that the WICB was under an obligation to obtain the WIPA's agreement to
the programme and the relevant arrangements. However, to impose such an obligation
upon the WICB would effectively transfer control of West Indies cricket scheduling
from the WICB to the WIPA which could not be right. The Arbitrator's interpretation
was an example of a "conclusion that flouts business common sense" and ascribed to
the parties "an intention that they plainly could not have had."
Page 19 of 40
57. The background matrix of facts, as set out is Article VI (a) and (b), included that the
WICB was responsible for scheduling annually, for the period October 1st to
September 30th
, a programme for the regional cricket competitions and the ICC was
responsible for scheduling the forward programme for international cricket.
58. Article VI (c)(i) provides that "the WICB and the WIPA will agree on an annual basis
prior to the WICB finalising arrangements relevant to the regional programme and
the overseas programme (including dates, location, travel and accommodation
arrangements. The WICB will provide the WIPA with reasonable opportunity to
consider the proposed arrangements prior to adoption." Pursuant to this clause, the
WIPA is entitled to make reasonable suggestions or take reasonable objections in
relation to the proposed arrangements which the WICB should consider in good faith.
In default of agreement, the WICB must be entitled to continue to arrange and
administer the programmes where the WIPA fails to raise reasonable objections.
Where reasonable objections are raised and discussions are ongoing thereon, that
should not delay the finalisation and implementation of the rest of the proposed
arrangements and the programme. An iterative process is essential to the operation of
this arrangement and must have been contemplated by the parties.
59. Accordingly, the WICB cannot be expected to propose, consult and agree all
arrangements for all matches by 1st
October or 3 to 6 months ahead of that date,
especially when the Article imposed no timetable on such agreement to agree or on
the WICB to provide the proposed arrangements. The Arbitrator, in finding that "the
process must commence six months before the end of the contract year on September
30 of each year but in any event no later than three months before September 30 in
each year", failed to distinguish between programmes and arrangements, implied
much into the contract that did not exist, ignored what was stated in the contract,
overlooked the true meaning of Article VI and ignored the iterative process involved
in the development of the programmes and arrangements. The terms implied by the
Arbitrator were patently arbitrary, unnecessary, unworkable and without any basis in
law.
Page 20 of 40
60. With respect to Article VI (c)(ii), this clause expressly reserved to the WICB and the
Territorial Boards "the right to vary the dated and location of matches played as part
of the competitions referred to in the regional programme but will agree with the
WIPA before doing so." It could not have been the intention of the parties that the
right conferred upon the WICB and the Territorial Boards would be negated by the
requirement that the prior agreement of the WIPA must be obtained since this would
confer a veto power upon the WIPA. When one takes into account the background
matrix of facts, a reasonable interpretation of the clause would be that the WICB
should be able to make reasonable and appropriate variations, potentially at very short
notice. The WICB should consult the WIPA on the proposed variations and the WIPA
should not unreasonably withhold its consent to the proposed variations. The WIPA
would be entitled to raise reasonable objections which the WICB should consider in
good faith and the parties should seek to agree upon the variations. In default of
agreement, the WICB must be entitled to continue to arrange and administer the
programmes, including making variations to the programme and arrangements so as to
ensure that West Indies cricket continues and does not suffer.
61. In respect of Article VI (c)(iii), this clause provides that "the WICB reserves the right
to agree to changes in the dates and locations of matches played as part of the
competitions referred to in the overseas programme but the WICB will agree with the
WIPA before doing so." The WICB submitted that if the ICC seeks to vary the dates
and locations of matches under the overseas programme, the WICB must be entitled
to apply those variations without the WIPA exercising a veto in respect thereof. An
interpretation which gives the WIPA the right to veto the variations of dates and
locations proposed by the ICC under the overseas programme would flout common
sense.
62. Accordingly, the WICB submitted that the Arbitrator should have construed the
words, "will agree" as used in that Article as an unenforceable agreement to agree or
as meaning “will strive to agree" or "will confer with". The Parties shall seek to agree
Page 21 of 40
and the WICB should consider reasonable objections put forward by the WIPA.
However, the WIPA cannot exercise a veto over the matters set out in Article VI (c)
and the WICB must be entitled to proceed in default of agreement.
WIPA's Submissions
63. In its written submissions filed on the 8th
May 2012, the WIPA submitted that where
the question referred for arbitration is a question of construction, which is generally a
question law, the decision of the Arbitrator cannot be set aside because the Court
would have come to a different conclusion.3 Unless the Arbitrator proceeded illegally,
for example by deciding on evidence which was inadmissible or on principles of
construction which the law does not countenance, mere dissent from the Arbitrator's
conclusion on construction is not enough to set aside the award.4
64. Further, the WIPA submitted that where the question of construction was specifically
referred to the Arbitrator (as opposed to arising in applying the facts to the terms of
the contract), the Court may not interfere with the Arbitrator's decision.5
65. However, in its written submissions filed on the 7th
January 2013, the WIPA accepted
that, having regard to Article XI, section 4 (b) of the Collective Bargaining
Agreement, where the parties have expressly agreed that questions of law decided by
the Arbitrator are not final and binding, the Court is not deprived of jurisdiction to
review errors of law which appear on the face of the award, even if the point of law
which was decided erroneously was expressly referred to the Arbitrator for
determination.
66. Having regard to my earlier finding that Article XI, section 4 (b) of the Collective
Bargaining Agreement confers on the Court the jurisdiction to review errors of law, I
3 King v. Thomas McKenna Ltd [1990] 2 Q.B. 480 at 491 4 Halsbury's (ibid) at para. 127; Kelantan Government v. Duff Development Co. [1923] A.C. 395; National Insurance Property Development Co. Ltd v. NH International (Caribbean) Ltd, (CV 2008-4881 and 4998) 5 F. Absolom Ltd v. Great Western London Garden Village Society [1933] A.C. 592 at 598,602.
Page 22 of 40
am of the opinion that this Court is entitled to review the Award to determine whether
the Arbitrator committed an error of law in his construction of Article VI of the MOU.
67. With respect to the power of the Court to remit the award to the Arbitrator, the WIPA
submitted that the only applicable ground for remission is that the Arbitrator
misconducted himself. They also sought to distinguish the decision of GKN Centrax
Gears Ltd v. Matbro Ltd6 relied upon by the WICB and submitted that the
contention that the Court may remit under section 18 of the Arbitration Act where
justice cannot otherwise be done is not applicable on the facts of this case.
68. Without prejudice to those submissions, the WIPA submitted that the Arbitrator's
interpretation of Article VI was correct. They submitted that the WICB's argument
that the WICB was authorised to unilaterally determine programmes and is only
required to discuss and agree arrangements with the WIPA was misconceived.
According to their interpretation, the combination of Article VI (a) and (c) (i) required
the WICB to reach agreement with the WIPA on matters such as dates, locations,
travel, and accommodation prior to the finalisation of the programme. With respect to
the finalisation of the overseas programme, Article VI (b) (ii) requires the WICB to
consult with the WIPA in relation to any proposed variations to the overseas
programme and Article VI (b) (iv) prohibits the WICB from agreeing to increase the
number of matches scheduled to be played under the overseas programme during the
term without reaching prior agreement with the WIPA. This limitation is extended in
Article VI (c) (iii) which requires the WICB to agree with the WIPA before changing
the dates and locations of matches played in the overseas programme.
69. Accordingly, the WIPA disagreed with the submissions of the WICB that Article VI is
unworkable and that the WIPA could hold a tour to ransom by withholding
agreement. They submitted that such clauses were quite common in a modern system
of collective bargaining and Article VI must be subject to an implied term that the
6 [1976] 2 Lloyd's Rep. 555
Page 23 of 40
parties will not withhold their agreement to the other side's proposals without
reasonable cause.
70. The Arbitrator made findings of fact that:
(i) The WICB failed to publish the annual schedule of matches with details
of the proposed arrangements within a reasonable time for the WIPA's
consideration of approval;
(ii) The WICB varied the annual schedule without the WIPA's agreement;
(iii)The WICB finalised the details and arrangements for tournaments and
matches on the annual schedule without obtaining the WIPA's
agreement;
(iv) The WICB made arrangements for the regional and WICB teams which
fell below the agreed minimum standards and without the WIPA's
agreement.
71. All these findings of fact have not been challenged by the WICB and they amounted
to clear breaches of Article VI (c) and (d).
The Law
72. There is no dispute that the relevant principles of contractual interpretation as
summarised by Lord Hoffman in Investors Compensation Scheme Ltd v. West
Bromwich Building Society 7 and in Mannai Investment Co. Ltd v. Eagle Star
Life Assurance Co. Ltd8 were cited by the Arbitrator in his Award.
73. In Investors Compensation Scheme Ltd. v. West Bromwich Building Society,
Lord Hoffman stated as follows:
"The principles may be summarised as follows:
1) Interpretation is the ascertainment of the meaning which the document
would convey to a reasonable person having all the background
7 (1998) 1 All ER 98 at p. 114 8 [1997] AC 749 at 775
Page 24 of 40
knowledge which would reasonably have been available to the parties in
the situation in which they were at the time of the contract.
2) The background was famously referred to by Lord Wilberforce as the
'matrix of fact', but this phrase is, if anything, an understated description
of what the background may include. Subject to the requirement that it
should have been reasonably available to the parties and to the exception
to be mentioned next, it includes absolutely anything which would have
affected the way in which the language of the documents would have
been understood by a reasonable man.
3) The law excludes from the admissible background the previous
negotiation of the parties and their declarations of subjective intent. They
are admissible only in an action for rectification. The law makes this
distinction for reasons of practical policy and, in this respect only, legal
interpretation differs from the way we would interpret utterances in
ordinary life. The boundaries of this exception are in some respects
unclear. But this is not the occasion on which to explore them.
4) The meaning which a document (or any other utterance) would convey to
a reasonable man is not the same thing as the meaning of its words. The
meaning of words is a matter of dictionaries and grammars, the meaning
of the document is what the parties using those words against the
relevant background would reasonably have been understood to mean.
The background may not merely enable the reasonable man to choose
between the possible meanings of words which are ambiguous but even
(as occasionally happens in ordinary life) to conclude that the parties
must, for whatever reason, have used the wrong words or syntax (see
Mannai Investment Co. Ltd v. Eagles Star Life Assurance Co Ltd [1997]
3 All ER 352.
5) The 'rule' that words should be given their 'natural and ordinary
meaning' reflects the common sense proposition that we do not easily
accept that people have made linguistic mistakes, particularly in formal
documents. On the other hand, if one would nevertheless conclude from
Page 25 of 40
the background that something must have gone wrong with the language,
the law does not require judges to attribute to the parties an intention
which plainly they could not have had. Lord Diplock made this point
more vigorously when he said in Antaios Cia Naviera SA v. Salen
Rederierna AB, The Antaios [1984] 3 All ER 229 at 233 ....:
'....if detailed semantic and syntactical analysis of words in a
commercial contract is going to lead to a conclusion that flouts
business common sense, it must be made to yield to business
common sense'"
74. In Mannai Investment Co. Ltd v. Eagle Star Life Assurance Co. Ltd, Lord
Hoffman also said:
"....It is of course true that the law is not concerned with the speaker's subjective
intentions. But the notion that the law's concern is therefore with 'the meaning of
his words' conceals an important ambiguity. The ambiguity lies in a failure to
distinguish between the meanings of words and the question of what would be
understood as the meaning of a person who uses words. The meaning of words,
as they would appear in a dictionary and the effect of their syntactical
arrangement, as it would appears in a grammar, is part of the material which we
use to understand a speaker's utterance. But it is only a part; another part is our
knowledge of the background against which the utterance was made. It is that
background which enables us, not only to choose the intended meaning when a
word has more than one dictionary meaning but also, in the ways I have
explained, to understand a speaker's meaning, often without ambiguity when he
has used the wrong words."
75. In the context of this matter, there are several important points that must be
emphasised at the outset:
a) According to the affidavit of Alana Medford, the MOU is dated 1st
October 2006 and therefore that is the relevant date that needs to be
considered in interpreting Article VI thereof;.
Page 26 of 40
b) The interpretation of Article VI requires the Court to ascertain the
meaning which the document would convey to a reasonable person
having all the background knowledge that would reasonably have been
available to the parties in the situation in which they were at the time of
the contract;
c) The subjective intent of the parties prior to the finalisation of the MOU is
not admissible;
d) A literal interpretation of the words used by the parties in the document is
not determinative of the meaning of the document. The meaning of the
document is what the parties using those words against the relevant
background matrix of facts would reasonably have understood the words
to mean.
76. In my opinion, having cited the relevant principles of construction, the Arbitrator
failed to apply these principles to the construction of Article VI and committed an
error of law in the following respects:
(i) The Arbitrator took into account evidence of what transpired after the
date of the MOU in his construction of the Article;
(ii) The Arbitrator failed to place sufficient emphasis on the fact that by the
express terms of the Article the WICB was responsible for the
programme for regional cricket competitions and the ICC was
responsible for the forward programme of international cricket and that
the WIPA was to be given a reasonable opportunity to consider the
proposed arrangements before they were adopted. Those facts formed
an important part of the background matrix of facts which should have
informed his construction of the Article;
(iii) The Arbitrator rejected the WICB's submission that all that was required
was that the WIPA be given a reasonable opportunity to consider the
arrangements prior to adoption on the grounds that "the freedom to
contract must be respected and the parties have chosen to use
mandatory language to the effect that they 'will agree' on an annual
Page 27 of 40
basis prior to WICB finalising arrangements." In so doing, the
Arbitrator demonstrated that he was adopting a literal interpretation of
the words "will agree" used by the parties instead of seeking to ascertain
the meaning which the document would convey to a reasonable man
having all the background knowledge that would have been available to
the parties in the situation in which they were at the time of the creation
of MOU.
(iv) By adopting this literal construction of the Article, the Arbitrator failed to
appreciate and/or disregarded the full implications upon the regional
programme and the overseas programme. For example, although by
Article VI (b)(ii) the parties acknowledged and agreed that the ICC and
ICC member countries were entitled to vary the overseas programme
during the Term, by sub-clause (b)(iv) the WICB could not agree to an
increase the number of matches scheduled to be played under the
overseas programme "without reaching prior agreement with WIPA".
Such a construction would effectively undermine the acknowledged
responsibility and power vested in the ICC to determine and vary the
overseas programme and confer upon the WIPA what has been
described as a "veto power" in respect of the finalisation of the overseas
programme of matches. By way of further example, by sub-clause (c)
(ii), the WICB and the Territorial Board reserved the right to vary the
date and location of matches played as part of the regional programme
set by the WICB but any such variation could not be effected until the
WIPA's prior agreement was secured. To my mind, such an
interpretation of Article VI flouts business common sense and must
yield to business common sense;
(v) The Arbitrator's finding that "the process must commence six months
before the end of the contract year on September 30 of each year but in
any event no later than three months before September 30 in each year"
ignored the terms of the Article that did not impose any such timetable.
In so doing, he sought to impose obligations on the WICB that were not
Page 28 of 40
contemplated by the parties at the time of entering into the MOU. He
also ignored the iterative process involved in the development of a
programme by the WICB and the finalisation of arrangements between
the WICB and the WIPA over the period of a year in the case of the
regional programme. Further, he failed to draw a distinction between
programmes and arrangements as expressed in the Article. Accordingly,
his finding flouted business common sense.
77. It was argued by the WICB that the provisions of Article VI of the MOU are
unenforceable and void for uncertainty. This court disagrees with that submission and
instead chooses to adopt the most reasonable construction of the provisions in dispute
that can be deduced from the provision of the Article VI of the MOU when read as a
whole, in the context of the factual matrix. In the circumstances, I accept the
alternative submissions made on behalf of the WICB that the meaning to be given to
Article VI should be as follows:
(i) Pursuant to sub-clause (b), in the event that the ICC and/or the ICC
member countries seek to vary the overseas programme, including
increasing the number of matches scheduled to be played under the
overseas programme during the Term, the WICB will consult with the
WIPA in relation to any such proposed variations and give them a
reasonable opportunity to consider and make reasonable suggestions or
take reasonable objections in relation thereto before acceptance by the
WICB and the implementation of such proposed variations. In default of
agreement within a reasonable time, the WICB shall be entitled to agree
to such variations;
(ii) Pursuant to sub-clause (c) (i), the WIPA is entitled to make reasonable
suggestions or take reasonable objections to the proposed arrangements
which the WICB should consider in good faith. In default of agreement
within a reasonable period of time, the WICB shall be entitled to
proceed to make arrangements relevant to the regional programme and
the overseas programme. Where reasonable objections have been raised
Page 29 of 40
by the WIPA and discussions are ongoing thereon, the WICB shall be
entitled to finalise and implement the programme and any arrangements
in relation thereto in respect of which there are no pending objections;
(iii) Pursuant to sub-clause (c)(ii), the WICB and the Territorial Boards will
provide the WIPA with a reasonable opportunity to consider the
proposed variations and to make reasonable suggestions or take
reasonable objections in relation thereto, which the WICB should
consider in good faith. The WIPA should not unreasonably withhold its
consent to the proposed variations and the parties shall seek in good
faith to agree upon the variations. In default of agreement within a
reasonable time, the WICB and the Territorial Boards shall be entitled
to make arrangements and administer the programme, including making
variations in the dates and locations of matches;
(iv) Pursuant to sub-clause (c) (iii), in the event that the ICC and/or the ICC
member countries seek to change the dates and locations of matches
played as part of the overseas programme during the Term, the WICB
will consult with the WIPA in relation to any such proposed variations
and give them a reasonable opportunity to consider and make
reasonable suggestions or take reasonable objections in relation thereto
which the WICB should consider in good faith. The WIPA should not
unreasonably withhold its consent to the proposed variations and the
parties shall seek in good faith to agree upon the variations. In default of
agreement within a reasonable time, the WICB shall be entitled to agree
to such changes.
III. Outside the Reference and Jurisdiction
WICB's submissions
78. The WICB submitted that the Notice of Dispute issued by the WIPA pursuant to
Article XI of the Collective Bargaining Agreement referenced only the failure of the
WICB to agree to the annual scheduling of matches for the international and regional
series of 2009/2010 allegedly in breach of Article VI of the MOU. However,
Page 30 of 40
notwithstanding the terms of the Notice of Dispute, the Arbitrator made the following
awards in favour of the WIPA:
(i) the sum of US$728,000.00 representing loss of earnings for the
Regional Four Day Tournament based on an alleged understanding
arising out of the WICB's proposal dated 18th
September 2009;
(ii) a sum equivalent to 40% of the gross receipts taken by the WICB in
relation to the additional T20 match played against South Africa;
(iii) a sum equivalent to the "usual fees" for those players who played in
the Caribbean T20 matches based on a portion of the WICB's gross
receipts for those matches.
79. The WICB complained that these awards were made outwith the arbitration for the
following reasons:
a) The WIPA's Notice of Dispute, its pleadings and its List of Issues made no plea
of an agreement with the WICB for 14 matches to be played while only 7
matches were played. Further, in his Award, the Arbitrator did not set out the
basis on which he found that such an alleged agreement existed;
b) The WIPA's Notice of Dispute, its pleadings and its List of Issues made no plea
of any agreement that the players who played an addition T20 match against
South Africa and who played in the Caribbean T20 matches would be paid a
portion of the WICB's gross receipts for those matches.
c) The WIPA admitted in its Re-Amended Points of Claim that the question of
players' fees and entitlements was a matter to be negotiated and that no
negotiations had taken place.
d) Accordingly, there was no basis on which the Arbitrator could have decided that
the parties had made any such agreements to justify his awards.
80. Accordingly, the WICB submitted that the awards are bad and must be set aside since
they are based on decisions which did not properly fall for determination under the
reference and which are irreconcilable with the Arbitrator's recitation of the Parties'
cases and the Lists of Issues.
81. Further, the Arbitrator's decision that the WICB render an account to the WIPA of all
revenue earned by the WICB in relation to the additional T20 match against South
Page 31 of 40
Africa and the Caribbean T20 matches played in July 2010 should also be set aside for
the following reasons:
(i) the order for the WICB to render an account was intended to facilitate his
awards recited above;
(ii) an order for an account is not a contractual remedy, save in the most
exceptional circumstances. It is a remedy to hold a fiduciary to account
and the WICB is not a fiduciary and the WIPA made no such claim in its
Notice of Dispute.
WIPA's submissions
82. The WIPA submitted that in its Amended Points of Claim it pleaded that "it was
agreed that the fees for the Regional 4 day matches would be US$1,300.00 per match
per player on the understanding that the format of the games would consist of 14
matches." Similarly, it pleaded that the WICB and the WIPA "agreed that the
Regional 4 day Format would consist of 14 rounds of games" but the WICB
unilaterally reduced this amount to 7. Further, it pleaded that upon the commencement
of an additional T20 international against South Africa the players became entitled to
"a share of all revenue earned by WICB for that additional game" and that in the past
the players were entitled to between 35-55% of gross receipts.
83. It was also submitted that there is no requirement that the WIPA detail particulars of
damages suffered in its Notice of Dispute. Since the Notice of Dispute identified a
breach of Article VI as the issue, the damages which flow from that breach is a matter
for determination by the Arbitrator.
84. In respect of the submission that an order for account is not a contractual remedy, the
WIPA submitted that the Arbitrator's finding was one of mixed fact and law. The
Arbitrator's findings of fact cannot be disturbed unless they are not supported by
evidence and since, on the face of the Award, there was no erroneous legal
proposition, the award cannot be set aside on the basis of the Arbitrator's finding of
law.
85. Further, in respect of the order for account of profits, this issue was pleaded and was
discussed during the course of the arbitration.
Page 32 of 40
Decision
86. In his Award, the Arbitrator recited in some detail the respective submissions of the
WICB and the WIPA on the following issues:
(i) whether the matters to be determined in the arbitration were confined to
matters arising before the issue of the Notice of Dispute dated 28th
January 2010 or could include events which postdate it;
(ii) Whether the Arbitrator had the power to order the WICB to provide an
account of the revenue earned for the additional T20 match against
South Africa;
(iii)Whether the Arbitrator could make an award in respect of the WIPA's
claim for loss of earnings by unidentified players in the Regional 4 Day
matches based on the evidence of Mr. Ramnarine only.
87. Unfortunately, however, the Arbitrator failed to expressly rule on these submissions
but proceeded to make certain awards which imply that he accepted the WIPA's
submissions and rejected those made by the WICB.
88. In my opinion, the Arbitrator committed an error of law in making the awards recited
at paragraph 23 (v) (b) of his Award for the following reasons:
(i) The origin of the complaint by the WIPA is the Notice of Dispute dated
28th
January 2010. This was issued pursuant to Article XI of the
Collective Bargaining Agreement. This Article provides at Section 1 (b)
that: "The party wishing to complain shall serve the other party with
notice in writing that a dispute or grievance has arise and shall in the
said notice state the precise nature of the dispute or grievance ("the
complaint"). The Notice of dispute referred to "the failure to agree to the
annual scheduling of matches for the international and regional series of
2009/2010 and those matters relating specifically thereto as follows:
venues;
accommodation;
Page 33 of 40
dates;
travel"
(ii) Thereafter, by letter dated 18th
November 2010 the parties sought the
services of the Arbitrator. This letter informed the Arbitrator that "A
dispute has arisen between the parties in relation to Article VI of the
MOU, pursuant to a Notice of Dispute dated January 28, 2010, filed by
WIPA. In accordance with the dispute resolution process contained in
Article XI of the CBA, the parties held good faith negotiations in
February 2010 and mediation on July 29, 2010. The parties have now
agreed to submit the matter to the final stage of the dispute resolution
process, which is arbitration."
(iii)It is clear from the Notice of Dispute and the letter of reference to the
Arbitrator that the dispute was confined to the matters raised therein and
did not include any claim for consequential damages or an account of
revenue earned by the WICB. At the arbitration, the issue of WIPA's
entitlement to seek the remedies of damages and accounts was actively
resisted by the WICB. In support of its contention that matters to be
determined at arbitration were not confined to the Notice of Dispute, the
WIPA sought to draw an analogy with industrial disputes which are
referred to the Industrial Court for determination. They also argued that
the matters in contention were as set out in their Amended Points of
Claim and that no injustice would be caused to the WICB since they
were fully aware of the case to be answered. Further, they submitted that
the breaches complained of were prospective in nature and the
consequences of the breach naturally come to fruition in a period after
the complaint has arisen. Finally, they referred to the principle of
judicial economy and submitted that if the Arbitrator were to find in
favour of the WIPA but was foreclosed from proceeding to deal with the
consequences arising naturally from that breach, then a separate action
Page 34 of 40
would be put in train. Therefore, it was in the interest of justice that the
instant arbitration deal with all relevant matters. As I said before, the
Arbitrator did not rule on these submissions but proceeded to make his
awards.
(iv) In my opinion, these arguments advanced by the WIPA are without
merit. If a Union complains to the Minister of Labour that a trade
dispute has arisen, that is the matter upon which the parties embark on
conciliation before the Minister. If the matter is not resolved at
conciliation, the Minister issues a certificate of unresolved dispute and
refers the trade dispute to the Industrial Court. When the Industrial
Court gives directions for the filing of Evidence and Arguments, the
parties are restricted to addressing the matters complained of in the
Union's report of a trade dispute. Further, the fact that the WIPA
included in their Amended Points of Claim certain facts that postdate the
Notice of Dispute does not mean that they were entitled so to do and
that no injustice would be caused to the WICB if such matters were
considered and formed the basis for the Arbitrator's decision. Whatever
may have happened after the Notice of Dispute that may have been in
breach of the MOU could have formed the basis of a separate complaint
but could not be incorporated into the complaint herein by simply
referring to those facts in the Amended Points of Claim. It is clear from
the Defence put forward by the WICB and from the Award that the
WICB vigorously challenged the inclusion of such facts in the
arbitration. The argument based on judicial economy also cannot be
justified since the jurisdiction of the Arbitrator cannot be enlarged
simply on the basis that it would save one party time and money.
(v) The Arbitrator was also not entitled to order the WICB to pay for loss of
earnings arising out of the reduced schedule for the Regional 4 day
tournament since this was not covered by the terms of the dispute
referred to arbitration. In addition, since it is not in dispute that only Mr.
Ramnarine gave evidence on behalf of the WIPA at the arbitration and
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that he did not produce any proof of the names of the players who
sustained loss of earnings as a result of the reduced schedule of matches,
the Arbitrator was not entitled to make such an Award in favour of the
WIPA;
(vi) The Arbitrator was also not entitled to order the WICB to pay a sum
equivalent to 40% of the gross receipts taken in relation to the additional
T20 match played against South Africa and to pay the "usual fees" for
those players who played in the Caribbean T20 matches for the reason that
these alleged breaches occurred on or about 10th
February 2010 and
July/August 2010 respectively, that is, after the date of the Notice of
Dispute.
(vii) Based on the Notice of Dispute before him, the Arbitrator was also not
entitled to order the WICB to account to the WIPA for its revenue earned
for the reason that this order was only granted to facilitate the awards he
made in relation to matters that occurred after the date of the Notice of
Dispute and outside his terms of reference.
IV. Causation
WICB's submissions
89. This ground is an alternative submission by the WICB to the effect that the Arbitrator
failed to identify any causal connection between the alleged breach of Article VI and
the damages he awarded to the WIPA.
90. They submitted that the awards made by the Arbitrator for loss of earnings, 40% of
the gross receipts for the T20 international match against South Africa and the usual
fees for those players who played in Caribbean T20 matches could only have been
awarded on the basis of breaches by the WICB of agreements which were not pleaded
and which were not the subject of a finding or holding by the Arbitrator.
91. Further, they submitted that the damages awarded do not flow from a breach of
Article VI on any or comprehensible basis.
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WIPA's submissions
92. In response, the WIPA submitted as follows:
(i) The agreements underlying the damages were pleaded in its Amended
Particulars of Claim;
(ii) The WICB made changes in the Schedules without the agreement of the WIPA
and, as a result of those breaches, players were deprived of income which they
would otherwise have earned, or played additional matches not previously
carded and therefore had to be paid either on an agreed basis or on a question of
merit. As a consequence, there was a causal connection between the breaches
and the damages awarded;
(iii)There was no error of law on the face of the Award so it could not be set aside;
(iv) The Court could not revisit the path of legal reasoning taken by the Arbitrator in
respect of his award of damages, unless some inadmissible evidence is
identified upon which his finding of law is based.
Decision
93. I disagree with the WIPA's submissions on this ground for the following reasons:
(i) For the reasons already given, the WIPA was not entitled to expand its complaint
to include facts which post-dated the Notice of Dispute. Accordingly, it could
not rely on any such allegations of breaches in support of a claim for damages
which was not covered by its Notice of Dispute dated 28th
January 2010;
(ii) The alleged changes by the WICB occurred after the date of the Notice of
Dispute and were not properly considered and/or accepted by the Arbitrator to
justify his award of damages;
(iii) For the reasons already given, the Court has jurisdiction to review the
Arbitrator's Award for errors of law;
(iv) For the reasons already given, the Arbitrator committed an error of law by
making the said awards.
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94. Accordingly, I uphold the submissions of the WICB that the Arbitrator failed to
identify any causal connection between the alleged breach of Article VI and the
damages awarded to the WIPA and that, in so doing, the Arbitrator erred in law.
V. WIPA's Standing
95. This ground is another alternative basis for challenging the award of damages made in
favour of the WIPA. I don't propose to spend much time hereon in the light of my
earlier reasons for deciding that the Arbitrator erred in law when he made the awards.
96. I would only reiterate that the Arbitrator ought not to have awarded damages to the
WIPA on behalf of players who were unidentified and from whom no evidence was
led to prove their losses. The WIPA is the exclusive players' representative and
bargaining agent recognised by the WICB. It may pursue breaches of the MOU or the
CBA on behalf of the players it represents utilising the Dispute Resolution process set
out in the CBA. However, just like a Union, if it complains that its members have
been aggrieved by the breaches of the WICB and have suffered loss of income by
reason thereof, it must frame its complaint in such a manner as to make clear the
persons on whose behalf it makes the complaint and it must adduce admissible
evidence to prove such loss in order to succeed in a claim for damages on behalf of
such players.
97. It is clear from a perusal of the Notice of Dispute that the complaint by the WIPA was
not so framed and it is also not in dispute that it did not lead any admissible evidence
from affected players.
98. Accordingly, this is yet another basis for finding that the Arbitrator erred in law when
he made the awards for loss of earnings, for 40% of the gross profits and for the
"usual fees".
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VI. Best Evidence and Substantive Procedural Irregularity
WICB's submissions
99. The WICB challenged the Arbitrator's award of US$100,000.00 to the WIPA by way
of compensation for the WIPA's loss of sponsorship opportunity on the ground that
he infringed the best evidence rule. Alternatively, they argued that he wrongly
accepted as admissible or attributed weight to secondary evidence regarding the
contents of a document that was not produced in evidence on grounds of
confidentiality.
100. They also submitted that by failing to require disclosure of the document and
accepting the assertion of Mr. Ramnarine as to its existence and terms, the Arbitrator
was guilty of substantive procedural irregularity.
WIPA's submissions
101. In response, the WIPA once again submitted that there was no error on the face of
the Award. In addition, they submitted that the question whether the Arbitrator based
his findings on evidence which was tenuous is a matter that should not be raised in
arbitrations. Further still, they submitted that the complaint of procedural irregularity
pointed to a ground of misconduct by the Arbitrator but the Court does not have an
inherent jurisdiction to remit.
Decision
102. I am of the opinion that the Arbitrator erred in law when he made his Award for
because he ought to have insisted on the production of the original documentation to
support this claim. There were several ways in which the issue of confidentiality
could have been protected, none of which the Arbitrator either considered or insisted
upon. Instead he chose to accept, without explanation, the viva voce evidence of Mr.
Ramnarine as to the existence of such a sponsorship opportunity and the terms
thereof and to award $100,000.00 for loss of sponsorship opportunity.
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103. In addition, an award of compensation for loss of sponsorship opportunity does not
flow naturally from the alleged breach of Article VI as set out in the Notice of
Dispute. Further still, the alleged loss resulted from the inability of the WIPA to host
its own T20 games in July/August 2010 as a consequence of the scheduling of the
Caribbean T20 matches in the same month and therefore arose after the date of the
Notice of dispute.
104. Accordingly, I find that the Arbitrator erred in law when he awarded the WIPA
compensation of US$100,000.00 for loss of sponsorship opportunity.
VII. Speculative damages
105. Having regard to my earlier findings with regard to the Arbitrator's awards at
paragraph 23 (v)(b) of the Award, I consider it unnecessary to embark on any further
consideration of this ground of challenge.
VIII. Nominal damages
106. The WICB challenged the award of nominal damages of US$10,000.00 for loss of
income for WIPA T20 on the ground that such a large amount is no nominal.
107. I am of the opinion that in making this award the Arbitrator fell into error for the
reason that he took into account facts that post-dated the Notice of Dispute. Further,
consistent with my earlier findings, I am of the opinion that any such loss did not
flow from the alleged breaches described in the Notice of Dispute. So apart from the
issue of whether US$10,000.00 could be considered an appropriate amount to award
as nominal damages, (which I am of the view it is not), I have come to the same
conclusion that the Arbitrator erred in law to order any compensation to the WIPA
for the loss of the WIPA T20.
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Disposition
108. Subject to the provision of the Arbitration Act, the question whether an award should
be remitted or set aside altogether is one for the discretion of the Court.[1]
In the
exercise of this discretion and guided by the Court’s power to set aside an award
under section 19 of the Arbitration Act and/or under the inherent jurisdiction of the
Court, I order that the Arbitrator’s decision should be set aside because of the errors
of law in his construction of Article VI of the MOU hereinbefore outlined. Based on
the interpretation of the Article VI adopted by the Arbitrator and the awards
consequent upon his interpretation, I am of the opinion that it will not be appropriate
to make an order for remission of any of matters referred to the Arbitrator for his
reconsideration. The several errors of law in the Arbitrator’s Award constitute
misconduct sufficient to justify an order that the Award be set aside altogether.
109. On the issue of costs, the Arbitrator ordered the WICB to pay 8/10 of the costs of the
Arbitration and 8/10 of all fees legal fees incurred by the WIPA. In this Claim, the
WICB sought an order for the costs of Mediation which preceded the Arbitration and
the Legal Fees associated with it, together with the costs of the Arbitration and
interest on the said sum. I am not inclined to grant an order in favour of the WICB for
costs associated with the Mediation since that does not arise out of the Award of the
Arbitrator which I am called to review. I am however persuaded that the WICB,
having been successful in its claim, is entitled to an award of the costs of the
Arbitration together with the costs of legal fees associated with the Arbitration and
costs in the present proceedings, to be assessed in default of agreement.
Dated this 28th
day of March 2014
André des Vignes
Judge
[1] Halsbury’s Laws of England 3rd Edition Volume 2 Paragraph 119