The Constitutional Court has confirmed that referral to forced arbitration in cases concerning the Water Services Corporation and the consumer was in violation of the fundamental human right to a fair hearing.

Acting Chief Justice Albert J Magri, Mr Justice Geoffrey Valenzia and Mr Justice Tonio Mallia delivered this judgment in a case filed by H Vassallo & Sons Ltd against the WSC, the Attorney General and Enemalta Corporation.

Last year the First Hall of the Civil Court found in favour of the company and ruled that forced arbitration in cases of disputes between the WSC and the consumer was in breach of the right to a fair hearing.

Defendants appealed to the Constitutional Court.

In its judgment the Constitutional Court pointed out that until 1996 arbitration was a voluntary means of solving disputes without the necessity of recourse to the courts.

Through the Arbitration Act and amendments thereto the concept of forced or mandatory arbitration was introduced in certain cases including disputes connected with electricity and water services.

H Vassalo & Sons Ltd told the court that it had been faced with mandatory arbitration as a result of a dispute it had with WSC. But the company claimed that this forced arbitration was in violation of its human rights as it was being deprived of access to the courts.

Furthermore, the company submitted that the manner in which arbitrators were appointed deprived them of independence and that it was deprived of the right to a full appeal to the courts.

The Constitutional Court found in favour of the company and ruled that forced arbitration did not offer any guarantee of the independence of the arbitrator.