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What is a provision for arbitration?

Posted on Friday, 13th December 2013 by

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Many commercial contracts have a provision for arbitration if a dispute arises between the parties.  Arbitration is used as an alternative to litigation as a means of resolving disputes.  Like a court judgment, the decision of an arbitral tribunal is final and binding.

In the recent case of Arts & Antiques Limited v Peter Richards & Towergate London Market Limited & Zurich Insurance Plc [2013] the Court highlighted the importance attached to an arbitrator’s decision and refused to reverse an arbitrator’s finding on the basis that to re-litigate issues in court proceedings would involve an attack on an arbitrator’s final and binding decision.

The Defendant argued that as the cause of action and issues had already been arbitrated, the Claimant should not be allowed to challenge them and in any event, such a challenge would be an abuse of process.  The Court accepted this argument and the claim was struck out.  The Court found there were no special conditions which would make recognising the arbitrator’s award unjust. To allow the claim would be unfair and oppressive to the Defendant and amount to an abuse of process.

Arbitration is a useful tool in the resolution of disputes and this case demonstrates the importance of the role of an arbitrator in bringing disputes to a close.

If you are unsure whether you wish to pursue arbitration to resolve a dispute, get in touch for a no obligation discussion on 0800 999 8880.

Frances Jacobs is one of our Solicitors in Leicester, who are all experts in their fields and dedicated to quality client care. If you would like to find out more about our solicitors in Leicester please contact us.

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Paul Stubbs - Litigation
Paul Stubbs - Litigation
paul.s@ehlsolicitors.co.uk 01332 862 113
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