Remedies for breach of the arbitration agreement
Produced in partnership with Peter McQueen
Remedies for breach of the arbitration agreement

The following Arbitration guidance note Produced in partnership with Peter McQueen provides comprehensive and up to date legal information covering:

  • Remedies for breach of the arbitration agreement
  • The remedy of enforcement of an arbitration agreement by a stay of proceedings
  • Anti-suit and anti-anti suit injunctions
  • The remedy of re-negotiation of the agreed dispute resolution procedure
  • The remedy for a defaulting or a non-participating party
  • The procedure where there is a defaulting or a non-participating party

An arbitration agreement is evidence that the parties have consented to resolve the dispute by arbitration and that consent, once given validly, cannot be unilaterally withdrawn. Further, the obligation to arbitrate is independent and separable from the main contract. Should one party breach that agreement by attempting to resolve the dispute by way of legal proceedings in a court, there are remedies available both nationally and internationally to enforce the obligation to arbitrate as evidenced by the arbitration agreement.

The remedy of enforcement of an arbitration agreement by a stay of proceedings

By s 9(1) of the Arbitration Act 1996 (AA 1996), a party to an arbitration agreement against whom legal proceedings are brought in respect of a matter which under that agreement is to be referred to arbitration, may apply to the court in which the proceedings have been brought to stay the proceedings, so far as they concern that matter. By AA 1996, s 9(3), such application may not be made by that party before taking the appropriate procedural step (if any) to acknowledge the legal proceedings against it or after that party has taken any steps in those proceedings to answer the substantive claim. By AA 1996, s 9(4), on such an application the court shall grant a stay unless the arbitration agreement is null and void,