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ARTICLE · 31 JANUARY 2014

Case Update - International Research Corp PLC v Lufthansa Systems Asia Pacific Pte Ltd and another [2013] SGCA 55

The Court departed from the strict rule governing the incorporation of arbitration clauses from one contract to another.

SingaporeLitigation, Mediation & Arbitration

Introduction

In the landmark decision of International Research Corp PLC v Lufthansa Systems Asia Pacific Pte Ltd and another [2013] SGCA 55 [IRCP v Lufthansa] delivered on 18 October 2013, the Singapore Court of Appeal departed from the strict rule governing the incorporation of arbitration clauses from one contract into another.

The strict rule of incorporation of arbitration clauses requires a clear and express reference to an arbitration clause contained in one contract before the arbitration clause may be incorporated into a separate, albeit related, contract.

This strict rule was first established by the English House of Lords in TW Thomas & Co Limited v Portsea Steamship Company Limited [1912] AC 1. In 1996, it was imported into our jurisprudence when the Singapore Court of Appeal applied the strict rule in Star-Trans Far East Pte Ltd v Norske-Tech Ltd and others [1996] 2 SLR(R) 196 [Star Trans] at [28]. Star Trans has been, till now, the authority on the

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