Kamaria Garden Supplies Inc (KGS) is a company based in Kamaria which is a leading retailer of garden supplies. KGS has been in email communications with the Australian company Brisbane Garden Gnomes Pty Ltd (BGG) to negotiate a contract for a large consignment of fluorescent garden gnomes.

After exchanging several emails BGG agrees to deliver to KGS a consignment of 500 fluorescent garden gnomes, CIF Port Smith in Kamaria. This will be one of the largest single consignments that BGG has delivered so far. As BGG and KGS are looking to develop a long term business relationship, they agree that any disputes will be resolved by a panel of three arbitrators at the Singapore International Arbitration Centre.

BGG packs and sends the consignment of 500 fluorescent garden gnomes to KGS. However when the fluorescent garden gnomes arrive in Port Smith, KGS finds that a large number of the garden gnomes have been smashed and cracked during the voyage. Also, when the shipping documentation for the consignment arrives at its office, KGS notices there are no indications of an insurance policy for the consignment. The General Manager of KGS is very annoyed with this situation as several of his customers have placed orders for the fluorescent garden gnomes. He emails BGG and demands that they send another consignment of 500 fluorescent garden immediately. However the manager of BGG demands full payment for the first consignment from KGS.

After several further emails, BGG and KGS agree to have their dispute resolved by a panel of three arbitrators at the Singapore International Arbitration Centre. After considering the submissions from both parties (including the email correspondence), the arbitral panel finds in favour of KGS and orders BGG to deliver a replacement consignment to KGS, and to compensate KGS for the costs it has incurred in relation to the arbitration.

The manager of BGG is not happy with the arbitral panel's determination; therefore, he seeks your advice on the correctness of the panel's decision, and is also interested in whether this arbitral award may be enforced through the Australian courts.