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ARTICLE · 15 JULY 2016

Court Refuses To Intervene In Disputed Arbitration Proceedings

The claimant alleged that the parties had entered into a binding commodities sale and purchase contract which contained a London arbitration clause. No shipments took place under the contract.

United KingdomTransport

In an interesting recent decision where Clyde & Co acted for the successful defendant, the Commercial Court reconfirmed its reluctance to interfere with the parties' choice of arbitration as the dispute resolution medium, even where the very existence of the arbitration agreement (and associated contract) was in dispute.

Facts

The claimant alleged that the parties had entered into a binding commodities sale and purchase contract which contained a London arbitration clause. No shipments took place under the contract.

The claimant sought to pursue a claim against the defendant under the contract, in London arbitration; however, the defendant rejected the claimant's request to accept service of an arbitration notice at its London solicitors' office, and denied that there was a valid contract. It took the position that if, or when, the claimant commenced London arbitration, it would contest the arbitrator's jurisdiction. For its part, the defendant had no claim

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