McCrory Scaffolding Ltd. v. McInerney Construction Ltd. [2004] IEHC 346 (5 November 2004)

McCrory Scaffolding Ltd. v. McInerney Construction Ltd. [2004] IEHC 346 (5 November 2004)

The arbitration clause in the GDLA 82 Conditions of Contract was incorporated into the contract by reference in the letter of intent, and the plaintiff's commencement of work constituted acceptance of those terms. Both parties were experienced commercial entities in the trade, and business realities support the...

Source-derived case information.

Citation
[2004] IEHC 346
Parties
Plaintiff: McCrory Scaffolding Limited; Defendant: McInerney Construction Limited
Jurisdiction
Ireland
Judgment Date
05 November 2004
Procedural Posture
Application for Stay of Proceedings Pending Arbitration / High Court Judgment on Interlocutory Application
Outcome
Application granted; proceedings stayed and dispute remitted to arbitration.
Legal Topics
Arbitration Clauses, Incorporation of Standard Terms, Stay of Proceedings, Construction Contracts
Contract Law Arbitration Arbitration Clauses Incorporation of Standard Terms Stay of Proceedings Construction Contracts

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Summary, issues, holding and outcome

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Parties

McCrory Scaffolding Limited

Plaintiff

McInerney Construction Limited

Defendant

Procedural Posture

Application for Stay of Proceedings Pending Arbitration / High Court Judgment on Interlocutory Application

Legal Issues

  1. 1 Whether an arbitration clause in standard contract terms (GDLA 82) was incorporated into the contract between the parties
  2. 2 Whether proceedings should be stayed in favour of arbitration under s. 5 of the Arbitration Act, 1980

Ratio Decidendi

The arbitration clause in the GDLA 82 Conditions of Contract was incorporated into the contract by reference in the letter of intent, and the plaintiff's commencement of work constituted acceptance of those terms. Both parties were experienced commercial entities in the trade, and business realities support the incorporation of standard terms. Therefore, the dispute falls within the arbitration clause and proceedings should be stayed in favour of arbitration.

Court Disposition

Application granted; proceedings stayed and dispute remitted to arbitration.

Orders

  • Order pursuant to s. 5 of the Arbitration Act, 1980 staying the proceedings.
  • Order remitting the plaintiff's claim to arbitration pursuant to the arbitration clause in the GDLA 82 terms.