Court of Appeal clarifies approach to conflicting dispute resolution clauses (Tyson v GIC Re, India)
Commercial analysis: The Court of Appeal has clarified the interpretation of conflicting dispute resolution clauses. Where inconsistent provisions (for example, conflicting arbitration and jurisdiction clauses) are contained within the same document, the document must be read as a whole, with effect given to all clauses if possible. However, this principle has limited application where the conflicting clauses are in different documents and governed by a hierarchy provision or 'confusion clause'. In that instance, (as in this case), where the clauses are inconsistent the hierarchy clause will apply. This significant judgment highlights the value of a clearly drafted express hierarchy provision in cases of conflict. Written by Harriet Campbell, senior knowledge lawyer at Penningtons Manches Cooper.