Bruce v Kordula & Ors [2001] ScotCS 113 (15 May 2001)

Bruce v Kordula & Ors [2001] ScotCS 113 (15 May 2001)

Clause 17 of the Partnership Agreement is void from uncertainty as it fails to provide a clear and effective mechanism for the appointment of an arbiter, and the court cannot cure this defect under section 2 of the Arbitration (Scotland) Act 1894 in the absence of a valid arbitration agreement.

Citation
[2001] ScotCS 113
Parties
Pursuer: Gifford William Bruce; Defenders: Keith Robert William Kordula and others
Jurisdiction
Scotland
Judgment Date
15 May 2001
Procedural Posture
Civil Partnership Dispute / Interlocutory Motion to Sist Proceedings for Arbitration
Outcome
Defenders' pleas in law repelled; motion to sist for arbitration refused.
Legal Topics
Validity of Arbitration Clauses, Uncertainty in Contract Terms, Court's Power to Appoint Arbiters, Interpretation of Partnership Agreements
Contract Law Arbitration Partnership Law Validity of Arbitration Clauses Uncertainty in Contract Terms Court's Power to Appoint Arbiters Interpretation of Partnership Agreements

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Parties

Gifford William Bruce

Pursuer

Keith Robert William Kordula and others

Defenders

Procedural Posture

Civil Partnership Dispute / Interlocutory Motion to Sist Proceedings for Arbitration

Legal Issues

  1. 1 Whether Clause 17 of the Partnership Agreement constitutes a valid and enforceable arbitration agreement
  2. 2 Whether the court can appoint an arbiter under section 2 of the Arbitration (Scotland) Act 1894 in the absence of a valid arbitration agreement

Ratio Decidendi

Clause 17 of the Partnership Agreement is void from uncertainty as it fails to provide a clear and effective mechanism for the appointment of an arbiter, and the court cannot cure this defect under section 2 of the Arbitration (Scotland) Act 1894 in the absence of a valid arbitration agreement.

Court Disposition

Defenders' pleas in law repelled; motion to sist for arbitration refused.

Orders

  • Repel defenders' second plea-in-law (motion to sist for arbitration)
  • Repel defenders' first plea-in-law (jurisdiction excluded by arbitration)