Cable & Wireless Plc v IBM United Kingdom Ltd. [2002] EWHC 2059 (Comm) (11 October 2002)

Cable & Wireless Plc v IBM United Kingdom Ltd. [2002] EWHC 2059 (Comm) (11 October 2002)

Clause 41.2 of the GFA is an enforceable contractual obligation to participate in ADR as recommended by CEDR, as it prescribes a sufficiently certain procedure. The court will adjourn the proceedings to allow ADR to take place, as C&W is in breach of this obligation and no strong cause exists to refuse enforcement.

Citation
[2002] EWHC 2059 (Comm)
Parties
Claimant: Cable & Wireless PLC; Defendant: IBM United Kingdom Ltd
Jurisdiction
England and Wales
Judgment Date
11 October 2002
Procedural Posture
Commercial Contractual Dispute / Interlocutory Application for Stay Pending ADR
Outcome
Application for stay granted; proceedings adjourned for ADR.
Legal Topics
Enforceability of ADR Clauses, Interpretation of Dispute Resolution Provisions, Stay of Proceedings, Alternative Dispute Resolution (adr), Contractual Obligations
Contract Law Civil Procedure Enforceability of ADR Clauses Interpretation of Dispute Resolution Provisions Stay of Proceedings Alternative Dispute Resolution (adr) Contractual Obligations

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 7 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Cable & Wireless PLC

Claimant

IBM United Kingdom Ltd

Defendant

Procedural Posture

Commercial Contractual Dispute / Interlocutory Application for Stay Pending ADR

Legal Issues

  1. 1 Whether clause 41.2 of the Global Framework Agreement constitutes an enforceable obligation to participate in ADR
  2. 2 Whether the court should stay proceedings to enforce the ADR clause
  3. 3 Whether the ADR clause is void for uncertainty or unenforceable as a mere agreement to negotiate

Ratio Decidendi

Clause 41.2 of the GFA is an enforceable contractual obligation to participate in ADR as recommended by CEDR, as it prescribes a sufficiently certain procedure. The court will adjourn the proceedings to allow ADR to take place, as C&W is in breach of this obligation and no strong cause exists to refuse enforcement.

Court Disposition

Application for stay granted; proceedings adjourned for ADR.

Orders

  • Hearing of the claim for declaratory relief adjourned until after ADR is attempted.
  • Parties to refer all outstanding disputes to ADR as per clause 41.2 of the GFA.