When Arbitration And Exclusive Jurisdiction Clauses Conflict: Which Wins?

OVERVIEW

Melford Capital Partners (Holdings) LLP and others v Digby [2021] EWHC 872 (Ch)

It is the strong policy of English law, based on party autonomy and freedom of contract, to enforce exclusive jurisdiction clauses (“EJC”) and arbitration clauses in contracts.  What then is a court to do when the parties, in their wisdom, include both an arbitration clause and an EJC in their contract?  Although, in principle, the answer to that question must be determined by the proper construction of the particular clauses in the particular contract, the Court in Melford Capital Partners (Holdings) LLP and others v Digby  [2021] EWHC 872 (Ch) reached the same result as earlier first instance decisions, which was to give primary effect to the arbitration clause and rule that the EJC merely identified the Court with supervisory jurisdiction over that arbitration.