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ARTICLE · 11 AUGUST 2017

Arbitration case law update

Holding Redlich
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These two recent decisions have clarified how dispute resolution clauses could be interpreted by different courts.

AustraliaLitigation, Mediation & Arbitration
Geoff Farnsworth
Geoff Farnsworth
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Two recent decisions have clarified how dispute resolution clauses will be interpreted by the courts.

In AGL Energy Limited v Jemena Gas Networks (NSW) Ltd [2017] NSWSC 765, the NSW Supreme Court ruled that a dispute resolution clause which provided that the parties must go to mediation "before having recourse to arbitration or litigation" was not a binding arbitration agreement.

The relevant clause stated:

"In the event that discussions under clause 30.4 fail to resolve the Dispute, each Party expressly agrees to endeavour to settle the Dispute by mediation administered by the Australian Commercial Disputes Centre (ACDC) before having recourse to arbitration or litigation."

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