Collins (Contractors) Ltd. v Baltic Quay Management (1994) Ltd

Collins (Contractors) Ltd. v Baltic Quay Management (1994) Ltd

The refusal to pay the sum claimed constituted a dispute within the meaning of the arbitration clause and section 9(1) of the Arbitration Act 1996. Section 111 of the Housing Grants Act does not preclude arbitration of such a dispute. The Halki principle applies, requiring a stay of proceedings in favour of arbitration regardless of the merits of the defence. The appeal is therefore dismissed.

Parties
Claimant/appellant: Collins (Contractors) Limited; Defendant/respondent: Baltic Quay Management (1994) Limited
Jurisdiction
England and Wales
Judgment Date
07 December 2004
Procedural Posture
Civil Appeal / Appeal From Order Staying Proceedings Under Section 9(4) Arbitration Act 1996
Outcome
Appeal dismissed
Legal Topics
Stay of Proceedings, Arbitration Agreements, Construction Contracts, Enforcement of Payment Certificates, Section 111 Housing Grants, Construction and Regeneration Act 1996
Arbitration Construction Law Contract Law Stay of Proceedings Arbitration Agreements Construction Contracts Enforcement of Payment Certificates Section 111 Housing Grants, Construction and Regeneration Act 1996

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Parties

Collins (Contractors) Limited

Claimant/appellant

Baltic Quay Management (1994) Limited

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From Order Staying Proceedings Under Section 9(4) Arbitration Act 1996

Legal Issues

  1. 1 Whether a dispute existed entitling the respondent to a stay under section 9(4) of the Arbitration Act 1996
  2. 2 Whether section 111 of the Housing Grants, Construction and Regeneration Act 1996 precludes arbitration where no notice of intention to withhold payment was served
  3. 3 Whether the reasoning in Halki Shipping Corporation v Sopex Oils Ltd applies to construction contracts under the Housing Grants Act

Ratio Decidendi

The refusal to pay the sum claimed constituted a dispute within the meaning of the arbitration clause and section 9(1) of the Arbitration Act 1996. Section 111 of the Housing Grants Act does not preclude arbitration of such a dispute. The Halki principle applies, requiring a stay of proceedings in favour of arbitration regardless of the merits of the defence. The appeal is therefore dismissed.

Court Disposition

Appeal dismissed

Orders

  • Proceedings stayed under section 9(4) Arbitration Act 1996
  • Costs to be subject to detailed assessment unless agreed