[INTERNATIONAL ARBITRATION] Amicable Settlement Process – A Condition Precedent To Arbitration?

In a multi-tiered dispute resolution clause, there are typically certain procedural steps, such as mediation or negotiation, that parties must fulfill before a dispute can be referred to arbitration. However, what happens if a party commences an arbitration without complying with the pre-arbitration procedures stipulated in a contract?

In CZQ and another v CZS [2023] SGHC(I) 16 ("CZQ v CZS"), the Singapore International Commercial Court ("SICC") recently ruled that the amicable settlement process stated in a contract is not a condition precedent to the commencement of an arbitration. The SICC carefully examined the language used in the dispute resolution clause and determined that parties were not contractually required to first attempt to "amicably settle" the dispute before commencing the arbitration.