Associated British Ports v Tata Steel UK Ltd

Associated British Ports v Tata Steel UK Ltd

Clause 22 of the Licence is a binding arbitration clause; the trigger phrase 'any major physical or financial change in circumstances' is sufficiently certain to create an obligation to refer disputes to arbitration, and the scope of the arbitration includes the Licence fee. The arbitrator can determine disputes by reference to reasonableness and context, and clause 22 is not void for uncertainty.

Parties
Claimant: Associated British Ports; Defendant: Tata Steel UK Limited
Jurisdiction
England and Wales
Judgment Date
03 April 2017
Procedural Posture
Civil / Judgment on Applications for Declaratory Relief and Stay of Proceedings
Outcome
Declarations granted; stay of further proceedings ordered.
Legal Topics
Arbitration Clause Validity, Contractual Uncertainty, Interpretation of Long Term Commercial Agreements
Contract Law Arbitration Arbitration Clause Validity Contractual Uncertainty Interpretation of Long Term Commercial Agreements

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Parties

Associated British Ports

Claimant

Tata Steel UK Limited

Defendant

Procedural Posture

Civil / Judgment on Applications for Declaratory Relief and Stay of Proceedings

Legal Issues

  1. 1 Whether clause 22 of the Licence is a binding arbitration clause
  2. 2 Whether the scope of clause 22 includes the Licence fee
  3. 3 Whether clause 22 is void for uncertainty due to the triggering event and lack of objective criteria

Ratio Decidendi

Clause 22 of the Licence is a binding arbitration clause; the trigger phrase 'any major physical or financial change in circumstances' is sufficiently certain to create an obligation to refer disputes to arbitration, and the scope of the arbitration includes the Licence fee. The arbitrator can determine disputes by reference to reasonableness and context, and clause 22 is not void for uncertainty.

Court Disposition

Declarations granted; stay of further proceedings ordered.

Orders

  • Declaration that clause 22 is a binding arbitration clause covering the Licence fee.
  • Stay of further proceedings pursuant to section 9 of the Arbitration Act 1996.