Interserve Industrial Services Ltd v ZRE Katowice SA

Interserve Industrial Services Ltd v ZRE Katowice SA

The December agreement was not a stand-alone contract but operated as a variation or supplemental agreement to the subcontract. There was an implied term that disputes under the December agreement would be subject to the same dispute resolution procedure as in the subcontract, including arbitration. The exclusive jurisdiction clause in the December agreement was construed as specifying the curial law, not excluding arbitration. Therefore, the proceedings should be stayed in favour of arbitration under section 9 of the Arbitration Act 1996.

Parties
Claimant: Interserve Industrial Services Limited; Defendant: ZRE Katowice S.A.
Jurisdiction
England and Wales
Judgment Date
09 November 2012
Procedural Posture
Civil (construction/commercial) / Interim Application to Stay Proceedings to Arbitration
Outcome
Application to stay proceedings to arbitration granted
Legal Topics
Stay of Proceedings, Variation of Contract, Dispute Resolution Clauses, Implied Terms, Jurisdiction Clauses
Arbitration Contract Law Construction Law Stay of Proceedings Variation of Contract Dispute Resolution Clauses Implied Terms Jurisdiction Clauses

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Parties

Interserve Industrial Services Limited

Claimant

ZRE Katowice S.A.

Defendant

Procedural Posture

Civil (construction/commercial) / Interim Application to Stay Proceedings to Arbitration

Legal Issues

  1. 1 Whether the December agreement is a stand-alone contract or a variation of the subcontract
  2. 2 Whether disputes under the December agreement are subject to the arbitration clause in the subcontract
  3. 3 Whether there is an implied term incorporating the subcontract's dispute resolution provisions into the December agreement

Ratio Decidendi

The December agreement was not a stand-alone contract but operated as a variation or supplemental agreement to the subcontract. There was an implied term that disputes under the December agreement would be subject to the same dispute resolution procedure as in the subcontract, including arbitration. The exclusive jurisdiction clause in the December agreement was construed as specifying the curial law, not excluding arbitration. Therefore, the proceedings should be stayed in favour of arbitration under section 9 of the Arbitration Act 1996.

Court Disposition

Application to stay proceedings to arbitration granted

Orders

  • Proceedings stayed in favour of arbitration under section 9 of the Arbitration Act 1996