Parties' Arbitration Agreement Trumps Exclusive Jurisdiction Clause

International arbitration specialist Nick McQueen considers a recent case where the court grappled with apparently conflicting dispute resolution provisions in the parties' agreement - a clause providing for arbitration under the Rules of the London Court of International Arbitration (LCIA) and an exclusive jurisdiction clause in favour of the English courts.

WM Comment

Unless strong reason is shown otherwise, the English courts will uphold a jurisdiction agreement and keep the parties to their bargain. As far as possible, they will seek to reconcile apparently conflicting provisions. The decision in this case, consistent with previous authority, reinforces the English courts' pro-arbitration approach. While each case will turn on its own facts, it seems clear that the courts will be extremely reluctant to reject the parties' arbitration agreement in favour of an exclusive jurisdiction clause.