Capital Trust Investment Ltd. v Radio Design AB & Ors [2002] EWCA Civ 135 (15th February, 2002)

Capital Trust Investment Ltd. v Radio Design AB & Ors [2002] EWCA Civ 135 (15th February, 2002)

Radio Design became party to a contract with CTIL on the terms of the application form, including the arbitration clause, when it allotted shares to CTIL. The arbitration clause is wide enough to cover all claims arising out of the application, including those for misrepresentation. Radio Design did not take a step in the proceedings to answer the substantive claim, so it retained the right to seek a stay under section 9(4) of the Arbitration Act 1996.

Citation
[2002] EWCA Civ 135
Parties
Claimant/appellant: Capital Trust Investment Limited; Defendant/respondent: Radio Design AB
Jurisdiction
England and Wales
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Arbitration Agreements, Stay of Proceedings, Jurisdiction Clauses, Misrepresentation, Share Subscription, Conflict of Laws
Arbitration Contract Law Company Law Arbitration Agreements Stay of Proceedings Jurisdiction Clauses Misrepresentation Share Subscription +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 14 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Capital Trust Investment Limited

Claimant/appellant

Radio Design AB

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

Legal Issues

  1. 1 Whether Radio Design was party to an agreement with CTIL containing an arbitration clause
  2. 2 Whether the arbitration clause covered the claims for misrepresentation
  3. 3 Whether Radio Design took a step in the proceedings depriving it of the right to seek a stay under section 9(3) of the Arbitration Act 1996

Ratio Decidendi

Radio Design became party to a contract with CTIL on the terms of the application form, including the arbitration clause, when it allotted shares to CTIL. The arbitration clause is wide enough to cover all claims arising out of the application, including those for misrepresentation. Radio Design did not take a step in the proceedings to answer the substantive claim, so it retained the right to seek a stay under section 9(4) of the Arbitration Act 1996.

Court Disposition

Appeal dismissed

Orders

  • Action stayed under section 9(4) of the Arbitration Act 1996 for arbitration in Sweden
  • First defendant awarded costs of the appeal, subject to detailed assessment if not agreed