The following Arbitration guidance note Produced in partnership with Professor Robert Merkin, Leigh-Ann Mulcahy QC and Tetyana Nesterchuk of Fountain Court Chambers provides comprehensive and up to date legal information covering:
This Practice Note considers applications to the courts of England and Wales (England and English are used as convenient shorthand) to stay litigation proceedings in favour of arbitration proceedings pursuant to section 9 of the Arbitration Act 1996 (AA 1996). This Practice Note includes practical guidance provided by Richard Power of Clyde & Co LLP.
Despite parties including arbitration clauses in their substantive contracts, when disputes arise one of the parties may decide that it no longer wishes to arbitrate. In such instances, that party may, instead, commence litigation proceedings to have the dispute determined in court. The reasons for taking such a stance can be varied—for example: the dispute may involve three or more parties, one of which is a not a party to the arbitration agreement; or, the parties have concluded a number of substantive agreements with conflicting jurisdiction clauses and the party considers (incorrectly) that it is contractually entitled to litigate the relevant dispute; or, the circumstances mean that litigation conducted in public is more aligned with the overall aims of the party in question.
If litigation proceedings are commenced when there is a valid arbitration agreement between the parties, the other party may:
if it wishes, agree to the matter being determined by the court (ie waive its agreement to arbitrate); in such circumstances, the court proceedings will continue,
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