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ARTICLE · 15 NOVEMBER 2012

Insurance And Reinsurance Weekly Update - 13th November 2012

Whether dispute fell within a dispute resolution clause and whether clause amounted to an arbitration agreement/court’s inherent power to order a stay

United KingdomInsurance

Turville Heath v Chartis

Whether dispute fell within a dispute resolution clause and whether clause amounted to an arbitration agreement/court's inherent power to order a stay

An insurance policy contained the following clause: "Arbitration. If you and we fail to agree on the amount of loss, either party may...demand that each selects an independent appraiser...The independent appraiser will select an arbitrator within 15 days....The independent appraisers will then appraise the loss and submit any differences to the arbitrator. A decision...agreed to by the two appraisers, or either appraiser and the arbitrator, will be binding". When the insured commenced litigation, the insurer applied to court for a stay of those proceedings. Edwards-Stuart held as follows:

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