Where parties have agreed to arbitrate disputes arising out of a contract, must the parties use arbitration in order to recover an undisputed, invoiced debt of less than £10,000?

In general terms, arbitration is a private, contractual dispute resolution mechanism—it takes place when parties agree to resolve current or future disputes by means of arbitration proceedings rather than through a court process or other means. While there is no statutory definition of arbitration, the Arbitration Act 1996 (AA 1996) states that it is founded on principles that:

1. •

   arbitration is a process whereby parties obtain a fair resolution of disputes by an impartial tribunal avoiding unnecessary expense and delay

2. •

   parties are free to agree the process for arbitrating their dispute subject to public interest requirements

3. •

   arbitration is a private dispute resolution mechanism and courts should not intervene unless provided for in AA 1996 (AA 1996, s 1)

Certain