British Telecommunications Plc v SAE Group Inc

British Telecommunications Plc v SAE Group Inc

There was no binding arbitration agreement between the parties; Clause 17 of Appendix 4 was not agreed, would have provided for expert determination not arbitration, and would not have covered the present dispute. Therefore, the Arbitration Act 1996 does not apply and the court may make the declarations sought.

Parties
Claimant: British Telecommunications PLC; Defendant: SAE Group INC
Jurisdiction
England and Wales
Judgment Date
18 February 2009
Procedural Posture
Civil (commercial/contract) / Judgment on Application for Declarations Regarding Arbitration Agreement
Outcome
Declarations granted in favour of BT (Claimant)
Legal Topics
Existence of Arbitration Agreement, Jurisdiction of Arbitral Tribunal, Expert Determination Vs Arbitration, Interpretation of Dispute Resolution Clauses
Arbitration Contract Law Existence of Arbitration Agreement Jurisdiction of Arbitral Tribunal Expert Determination Vs Arbitration Interpretation of Dispute Resolution Clauses

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Parties

British Telecommunications PLC

Claimant

SAE Group INC

Defendant

Procedural Posture

Civil (commercial/contract) / Judgment on Application for Declarations Regarding Arbitration Agreement

Legal Issues

  1. 1 Whether the contract contains a binding arbitration agreement
  2. 2 Whether Clause 17 of Appendix 4 constitutes an arbitration agreement or expert determination
  3. 3 Whether Clause 17 covers the present dispute

Ratio Decidendi

There was no binding arbitration agreement between the parties; Clause 17 of Appendix 4 was not agreed, would have provided for expert determination not arbitration, and would not have covered the present dispute. Therefore, the Arbitration Act 1996 does not apply and the court may make the declarations sought.

Court Disposition

Declarations granted in favour of BT (Claimant)

Orders

  • The Contract does not contain any agreement to arbitrate or any agreement that any dispute shall be subject to expert or third party determination.
  • The draft terms contained in Appendix 4 of Schedule 2 to the Contract are of no effect since no agreement in the form of the said terms was executed by the parties.