Trunk Flooring Ltd v HSBC Asset Finance (UK) Ltd [2015] NICA 68 (11 November 2015)

Trunk Flooring Ltd v HSBC Asset Finance (UK) Ltd [2015] NICA 68 (11 November 2015)

There was no evidence of an offer and acceptance to abandon the arbitration agreement; both parties were actively engaged in arbitration until the costs impasse; the withdrawal of the reference did not terminate the arbitration agreement, and the respondent failed to discharge the burden of proving the agreement was inoperative or abandoned. The stay should be maintained.

Citation
[2015] NICA 68
Parties
Plaintiff/respondent: Trunk Flooring Limited; First Named Defendant: HSBC Asset Finance (UK) Limited; Second Named Defendant/appellant: Costi Righi SPA
Jurisdiction
Northern Ireland
Judgment Date
11 November 2015
Procedural Posture
Appeal / Court of Appeal Judgment on Appeal Against High Court Order Removing Stay of Proceedings Pending Arbitration
Outcome
Appeal allowed; stay of proceedings maintained.
Legal Topics
Stay of Proceedings, Arbitration Agreement, Abandonment of Arbitration, Repudiation, Section 9 Arbitration Act 1996
Arbitration Contract Law Civil Procedure Stay of Proceedings Arbitration Agreement Abandonment of Arbitration Repudiation Section 9 Arbitration Act 1996

Case Brief

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Parties

Trunk Flooring Limited

Plaintiff/respondent

HSBC Asset Finance (UK) Limited

First Named Defendant

Costi Righi SPA

Second Named Defendant/appellant

Procedural Posture

Appeal / Court of Appeal Judgment on Appeal Against High Court Order Removing Stay of Proceedings Pending Arbitration

Legal Issues

  1. 1 Whether the arbitration agreement between the parties had become inoperative or abandoned so as to justify lifting the stay of proceedings under section 9(4) of the Arbitration Act 1996
  2. 2 Whether the impasse over arbitration costs and withdrawal of the reference constituted abandonment or repudiation of the arbitration agreement

Ratio Decidendi

There was no evidence of an offer and acceptance to abandon the arbitration agreement; both parties were actively engaged in arbitration until the costs impasse; the withdrawal of the reference did not terminate the arbitration agreement, and the respondent failed to discharge the burden of proving the agreement was inoperative or abandoned. The stay should be maintained.

Court Disposition

Appeal allowed; stay of proceedings maintained.

Orders

  • Order of the High Court removing the stay is reversed.
  • Stay of proceedings against the appellant is maintained.