Introduction
Recently, in Datuk Bandar Kuala Lumpur v Sri Tinggi Sdn Bhd [2025] MLJU 618, the High Court addressed the issue of whether an arbitrator is bound by the doctrine of stare decisis. The case arose from an application by Datuk Bandar Kuala Lumpur (“DBKL”) to set aside an arbitration award (“Award”) in Favor of Sri Tinggi Sdn Bhd (“STSB”). The court ultimately ruled that an arbitrator is indeed bound by stare decisis.
Case background
The dispute stemmed from a contract between DBKL, as the employer, and STSB, as the contractor, for the construction of a multi-level interchange at Jalan Ampang/Jalan Jelatek.
During arbitration proceedings, DBKL contended that clause 44 of the Conditions of Contract, which specified the period for claiming loss and expense, should be read in isolation. However, the arbitrator ruled that clause 44 must be interpreted alongside clause 43.