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ARTICLE · 05 NOVEMBER 2002

Commercial Court Enforces ADR Clause

Herbert Smith Freehills Kramer LLP
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United KingdomLitigation, Mediation & Arbitration

A recent Commercial Court decision has enforced a clause requiring the parties to refer their disputes to ADR (Alternative Dispute Resolution). This decision of Colman J in Cable & Wireless Plc v IBM United Kingdom Ltd [2002] EWHC 2059 (Comm Ct) has confirmed the trend towards mediation as "a firmly established, significant and growing facet of English procedure".

Background

Cable & Wireless and IBM entered into a Global Framework Agreement in December 2000 for the supply of information technology throughout the world.

A dispute arose under the Agreement as a result of which proceedings were issued. An application was then made to stay these proceedings pending the dispute being referred to ADR on the basis of an ADR clause in the Agreement.

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