PETER MORTON AND OTHERS AGAINST BRITISH POLAR ENGINES LTD [2021] ScotCS CSOH_118 (23 November 2021)

PETER MORTON AND OTHERS AGAINST BRITISH POLAR ENGINES LTD [2021] ScotCS CSOH_118 (23 November 2021)

The arbitration clause in the 1982 trust deed does not apply to the stand-alone contractual obligation created by the 2017 Schedule of Contributions; even if it did, the defender lost the right to rely on arbitration by lodging substantive defences and agreeing a joint statement of issues without reference to arbitration, contrary to section 10(1)(d) of the Arbitration (Scotland) Act 2010.

Citation
[2021] ScotCS CSOH_118
Parties
Pursuer: Peter John Morton; Pursuer: Gareth Robertson; Pursuer: Stewart McLaughlin Davis; Defender: British Polar Engines Limited
Jurisdiction
Scotland
Judgment Date
23 November 2021
Procedural Posture
Commercial Action for Payment of Unpaid Pension Contributions / Debate on Preliminary Plea Regarding Arbitration and Motion to Sist
Outcome
Defender's first plea in law repelled; motion to sist refused.
Legal Topics
Arbitration Clauses, Interpretation of Trust Deeds, Statutory Pension Debts, Waiver and Personal Bar, Jurisdiction of Courts Vs Arbitration
Contract Law Trusts and Pensions Law Arbitration Arbitration Clauses Interpretation of Trust Deeds Statutory Pension Debts Waiver and Personal Bar Jurisdiction of Courts Vs Arbitration

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Parties

Peter John Morton

Pursuer

Gareth Robertson

Pursuer

Stewart McLaughlin Davis

Pursuer

British Polar Engines Limited

Defender

Procedural Posture

Commercial Action for Payment of Unpaid Pension Contributions / Debate on Preliminary Plea Regarding Arbitration and Motion to Sist

Legal Issues

  1. 1 Does the arbitration clause in the trust deed apply to the claim for unpaid contributions under the 2017 Schedule?
  2. 2 If so, has the defender lost the right to rely on the arbitration clause under section 10 of the Arbitration (Scotland) Act 2010?

Ratio Decidendi

The arbitration clause in the 1982 trust deed does not apply to the stand-alone contractual obligation created by the 2017 Schedule of Contributions; even if it did, the defender lost the right to rely on arbitration by lodging substantive defences and agreeing a joint statement of issues without reference to arbitration, contrary to section 10(1)(d) of the Arbitration (Scotland) Act 2010.

Court Disposition

Defender's first plea in law repelled; motion to sist refused.

Orders

  • Defender's first plea in law repelled.
  • Averments relating to the arbitration clause in answer 1 refused probation.