February 8, 2013
Judge Rules Majali Family Cannot Review Arbitration Award
I previously blogged abut Sandi Majali's estate challenging an arbitration award to Majali's former business partner, Lindani Mthwa. On Thursday, South Gauteng High Court judge threw out the estate's attempt to review the award. The judge said that Majali's estate had no direct interest in it.
The Majali family's counsel tried to argue that, because Majali was not notified in writing of the initial arbitration hearing that occurred while he was still alive, the award was obtained improperly. And if an award was improperly obtained, the Arbitration Act entitles a court to set aside an arbitration order by "any party to the reference." The judge did not think that the failure to notify Majali of the hearing in writing was fatal. He also said that Majali did not even qualify as a "party to the reference". Imvume claimed to be Siyanda's shareholder, not Mr. Majali. A party to the reference must have a legal interest in the arbitration, and Majali did not.
See Franny Rabkin, Majali Estate Loses Bid to Access Dividends, BDlive, Feb. 8, 2013.
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