It is always important to ensure that any arbitration agreement
is clear and actionable in the manner that the parties intended.
This includes the circumstances in which the arbitration may be
triggered, as shown recently in Associated British Ports v Tata
Steel UK Ltd [2017] EWHC 694 (Ch).
ABP v Tata
A dispute arose following Tata Steel UK Ltd's (Tata)
request to renogotiate the terms of a 25-year licence agreement
(the Licence) with Associated British Ports (ABP). Tata sought to
alter the Licence under clause 22, which stated:
'It is hereby agreed between the parties that in the
event of any major physical or financial change in circumstances
affecting the operation of [Tata's] Work at Llanwern or Port
Talbot or ABP's operation of the Tidal Harbour...either party
may serve notice on the other requiring the terms of this Licence
to be re-negotiated...if agreement is not reached within a period
of six months from the date of the notice the matter shall
