CPB Held To Its DEAL

A recent decision of the New South Wales Supreme Court in CPB Contractors Pty Ltd v DEAL S.R.L.  [2021] NSWSC 820 confirmed the pro-arbitration approach of the Supreme Court and examined interesting issues concerning:

1. the breadth of the kompetenz-kompetenz  principle, and whether the Court or an arbitrator should determine if a "matter" falls within the scope of an arbitration agreement; and
2. under what circumstances is it appropriate for the Court to impose conditions when staying proceedings and referring proceedings to arbitration under section 7(2) of the International Arbitration Act  1974 (Cth) (IAA).

Vincent Young acted for DEAL.

Facts

The plaintiff, CPB Contractors Pty Ltd (CPB) formed a joint venture with Rizzani de Eccher SpA (Rizzani) for the purpose of submitting a tender proposal in respect of major upgrade works to increase the carrying capacity of the M4 road between Silverwater Rd and Parramatta (M4 Project).