Arbitration Clause in UK Law

Leading Cases
  • Premium Nafta Products Ltd v Fili Shipping Company Ltd
    • House of Lords
    • 17 Oct 2007

    If, as appears to be generally accepted, there is no rational basis upon which businessmen would be likely to wish to have questions of the validity or enforceability of the contract decided by one tribunal and questions about its performance decided by another, one would need to find very clear language before deciding that they must have had such an intention.

    In my opinion the construction of an arbitration clause should start from the assumption that the parties, as rational businessmen, are likely to have intended any dispute arising out of the relationship into which they have entered or purported to enter to be decided by the same tribunal. The clause should be construed in accordance with this presumption unless the language makes it clear that certain questions were intended to be excluded from the arbitrator's jurisdiction.

    The proposition that any jurisdiction or arbitration clause in an international commercial contract should be liberally construed promotes legal certainty. It serves to underline the golden rule that if the parties wish to have issues as to the validity of their contract decided by one tribunal and issues as to its meaning or performance decided by another, they must say so expressly. Otherwise they will be taken to have agreed on a single tribunal for the resolution of all such disputes.

  • Aggeliki Charis Compania Maritima S.A. v Pagnan S.p.A. (The Angelic Grace)
    • Court of Appeal (Civil Division)
    • 17 May 1994

    In my judgment, where an injunction is sought to restrain a party from proceeding in a foreign court in breach of an arbitration agreement governed by English law, the English Court need feel no diffidence in granting the injunction, provided that it is sought promptly and before the foreign proceedings are too far advanced.

  • Sea Trade Maritime Corporation v Hellenic Mutual War Risks Association (Bermuda) Ltd (The Athena) [QBD (Comm)]
    • Queen's Bench Division (Commercial Court)
    • 18 Oct 2006

    In principle, English law accepts incorporation of standard terms by the use of general words and, I would add, particularly so when the terms are readily available and the question arises in the context of dealings between established players in a well-known market. In contrast, and for the very reason that it concerns other parties, a "stricter rule" is applied in charterparty/bills of lading cases.

  • Heyman v Darwins Ltd
    • House of Lords
    • 20 Feb 1942

    I am accordingly of opinion that the doctrine of approbate and reprobate does not apply to prevent a party to a contract who has declined to proceed further with the performance of his obligations to the other party from invoking an arbitration clause in the contract for the purpose of settling all questions to which his declinature has given rise. In all this I have assumed that the arbitration clause in its terms is wide enough to cover the dispute.

  • Through Transport Mutual Insurance Association (Eurasia) Ltd v New India Assurance Company Ltd [QBD (Comm)]
    • Queen's Bench Division (Commercial Court)
    • 21 Mar 2005

    However, as soon as a third party in the position of New India makes a demand on the insurer there is the potential for a dispute to arise, as indeed happened in this case, and once a dispute has arisen in relation to the third party's right to recover from the insurer it is one which must be determined by arbitration in accordance with the contract.

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Legislation
  • Arbitration Act 1996
    • UK Non-devolved
    • 1 de Enero de 1996
    ......contractual or not). . (2) The reference in an agreement to a written. form of arbitration clause or to a document containing an arbitration. clause constitutes an arbitration agreement if the reference is such. as to make that clause part of the ......
  • Petroleum and Submarine Pipe-lines Act 1975
    • UK Non-devolved
    • 1 de Enero de 1975
    ...... Petroleum production licences . S-17 . Modification of model clauses for incorporationin petroleum production licences. 17 Modification of ...for the purposes of proceedings (which may be arbitration. proceedings) in connection with the licence. . (3) Any act or omission ......
  • Carriage of Goods by Road Act 1965
    • UK Non-devolved
    • 1 de Enero de 1965
    ......S-7 . Arbitrations. 7 Arbitrations. . (1) Any reference in the preceding provisions of ...) a statement that the carriage is subject, notwithstanding any. clause to the contrary, to the provisions of this Convention. . SCH-1.2 .   . ......
  • The Energy (Transfer of Functions, Consequential Amendments and Revocation) Regulations 2016
    • UK Non-devolved
    • 1 de Enero de 2016
    ...... (e) (e) arbitration. . (5) Documents or forms produced for use in connection with a ...(9) Schedule 5 (model clauses for methane drainage licences) is amended as follows. . (10) In clause ......
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Books & Journal Articles
  • Bankers Trust Company and Bankers Trust International plc v PT Jakarta International Hotels & Development
    • Núm. 7-3, Marzo 1999
    • Journal of Financial Regulation and Compliance
    • 271-273
    During the course of 1997 Bankers Trust International plc (BTI) and the defendant company, PT Jakarta International Hotels & Development (JIHD), entered into a series of seven Indonesian rupiah...
    ...... th e Rule s o f th e Londo n Cour t o f Internationa l Arbitration , whic h rule s ar c deeme d t o b e incorporate d b y referenc e int o thi s clause' . BT I an d JIH D wer e du e t o mak e thei r first payment s ......
  • Choice of law clauses in customer agreements: NASD conduct rule 3110(f)(4)
    • Núm. 6-3, Marzo 1998
    • Journal of Financial Regulation and Compliance
    • 224-230
    Most account opening agreements used by US brokerage firms contain a standard predispute arbitration clause requiring customers to submit all disputes relating to the account to arbitration conduct...
    ...... or the NASD. ABSTRAC T Most account opening agreements used by US brokerage firms contain a standard predispute arbitration clause requiring customers to submit all disputes relating to the account to arbitration conducted according to the rules of a ......
  • NOTES OF CASES
    • Núm. 6-1‐2, Diciembre 1942
    • The Modern Law Review
    ...... A. FARNSWORTH. NOTES OF CASES Arbitration Clause-Whether Applicable after ‘‘ Repadistion yy of Contract ......
  • YASUDA FIRE & MARINE INSURANCE CO OF EUROPE LTD V ORION MARINE INSURANCE UNDERWRITING AGENCY LTD AND ANOTHER
    • Núm. 3-4, Abril 1995
    • Journal of Financial Regulation and Compliance
    • 391-398
    The Defendants, two associated companies, acted as underwriting agents for the Plaintiff under various underwriting agency agreements. The agreements were terminated and ceased to operate for furth...
    ...... d t o co - exis t wit h an y righ t conferre d b y tha t clause ; tha t sinc e th e inspectio n facilit y conferre d b y cl . 4. ......
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Law Firm Commentaries
  • Scope of arbitration clause (UK)
    • LexBlog United Kingdom
    The UK Chancery Division held that an arbitration clause relating to any dispute regarding a contractual undertaking to renegotiate port licensing conditions in the event of ‘any major physical or ...
  • Arbitration Without An Express Arbitration Clause
    • JD Supra United Kingdom
    Arbitral tribunal had jurisdiction despite the lack of an express arbitration clause. In Sonact Group Limited v Premuda Spa [2018] EWHC 3820, the English High Court confirmed that an arb...
  • Beware the “Non-Exclusive” Arbitration Clause
    • JD Supra United Kingdom
    “Non-exclusive” arbitration clauses provide that disputes “may” be referred to arbitration (rather than “shall” or “should” be so referred). The Privy Council clarified the nature of these clauses ...
  • Arbitration clause not void for vagueness (UK)
    • LexBlog United Kingdom
    The UK Chancery Division held that an arbitration clause, which could be invoked over a dispute whether there had been ‘any major physical or financial change in circumstances affecting the operati...
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