Crest Nicholson (Eastern) Ltd v Western & Anor [2008] EWHC 1325 (TCC) (16 June 2008)

Crest Nicholson (Eastern) Ltd v Western & Anor [2008] EWHC 1325 (TCC) (16 June 2008)

There was no binding arbitration agreement between the parties under the NHBC Buildmark Scheme as incorporated into the purchase contract. Even if there were, only the Chartered Institute of Arbitrators could appoint the arbitrator, and the appointment by the RICS was invalid, leaving the arbitrator without jurisdiction.

Citation
[2008] EWHC 1325 (TCC)
Parties
Claimant: Crest Nicholson (Eastern) Limited; Defendants: Mr and Mrs Western
Jurisdiction
England and Wales
Judgment Date
16 June 2008
Procedural Posture
Arbitration Related Declaratory Proceedings / Judgment After Hearing on Arbitrator's Jurisdiction
Outcome
Declaration granted that the arbitrator has no jurisdiction; partial costs order made.
Legal Topics
Arbitrator's Jurisdiction, Arbitration Agreement Validity, Appointment of Arbitrator, Interpretation of NHBC Buildmark Scheme, Costs in Arbitration Related Proceedings
Arbitration Construction Law Contract Law Arbitrator's Jurisdiction Arbitration Agreement Validity Appointment of Arbitrator Interpretation of NHBC Buildmark Scheme Costs in Arbitration Related Proceedings

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Parties

Crest Nicholson (Eastern) Limited

Claimant

Mr and Mrs Western

Defendants

Procedural Posture

Arbitration Related Declaratory Proceedings / Judgment After Hearing on Arbitrator's Jurisdiction

Legal Issues

  1. 1 Whether there was a binding arbitration agreement between the parties under the NHBC Buildmark Scheme as incorporated into the purchase contract
  2. 2 Whether the appointment of an arbitrator by the RICS (rather than the Chartered Institute of Arbitrators) was valid
  3. 3 Whether the court had jurisdiction to order costs incurred in the abortive arbitration

Ratio Decidendi

There was no binding arbitration agreement between the parties under the NHBC Buildmark Scheme as incorporated into the purchase contract. Even if there were, only the Chartered Institute of Arbitrators could appoint the arbitrator, and the appointment by the RICS was invalid, leaving the arbitrator without jurisdiction.

Court Disposition

Declaration granted that the arbitrator has no jurisdiction; partial costs order made.

Orders

  • Declaration that Mr Malone has no jurisdiction as arbitrator to resolve the disputes between the parties.
  • The Westerns to pay £4,000 towards CNEL's costs of these court proceedings.