Privy Council Clarifies Position On Non-Exclusive Arbitration Clauses In BVI

In Anzen Limited and others v Hermes One Limited [2016] UKPC One, the Privy Council has reversed an instance of agreement between the Court of Appeal of the Eastern Caribbean Supreme Court (CA) and Bannister J at First Instance, in settling an important point on the interpretation of non-exclusive arbitration clauses.

Synopsis

In an appeal from the British Virgin Islands, described by the Board as raising "short and interesting points on the interpretation of an arbitration clause in a shareholders' agreement", the Privy Council has decided that both Justice Bannister in the Commercial Court and the Court of Appeal which upheld his decision, were wrong to hold that a party to a non-exclusive arbitration clause was not entitled to a stay of litigation, without themselves having commenced an arbitration.