United Creameries Co., Ltd v. David T. Boyd & Co. [1912] ScotLR 460 (27 February 1912)

United Creameries Co., Ltd v. David T. Boyd & Co. [1912] ScotLR 460 (27 February 1912)

Where an arbitration clause is ambiguous but there is a relevant averment of trade custom that, if proved, would render the clause sufficiently specific, the matter should proceed to proof in the ordinary court, not by summary application, to allow for proper recording of evidence and appeal.

Citation
[1912] ScotLR 460
Parties
Pursuer: United Creameries Company, Limited; Defender: David T. Boyd & Company
Jurisdiction
Scotland
Judgment Date
27 February 1912
Procedural Posture
Petition for Appointment of Arbiter Under Arbitration (scotland) Act 1894 / Appeal From Sheriff Court to Court of Session Inner House, First Division
Outcome
Interlocutors of Sheriff and Sheriff-Substitute recalled; cause remitted to Sheriff-Substitute to transfer to ordinary Court for proof on averments of custom.
Legal Topics
Appointment of Arbiter, Custom of Trade, Summary Procedure, Interpretation of Arbitration Clauses
Arbitration Commercial Law Civil Procedure Appointment of Arbiter Custom of Trade Summary Procedure Interpretation of Arbitration Clauses

Case Brief

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Parties

United Creameries Company, Limited

Pursuer

David T. Boyd & Company

Defender

Procedural Posture

Petition for Appointment of Arbiter Under Arbitration (scotland) Act 1894 / Appeal From Sheriff Court to Court of Session Inner House, First Division

Legal Issues

  1. 1 Whether a summary application is competent for appointment of an arbiter where the arbitration clause is ambiguous and requires proof of custom
  2. 2 Whether the arbitration clause 'disputes to be settled by arbitration in Glasgow' is sufficiently specific under the Arbitration (Scotland) Act 1894 when read with alleged trade custom
  3. 3 Whether proof of custom can render an otherwise ambiguous arbitration clause effective under the Act

Ratio Decidendi

Where an arbitration clause is ambiguous but there is a relevant averment of trade custom that, if proved, would render the clause sufficiently specific, the matter should proceed to proof in the ordinary court, not by summary application, to allow for proper recording of evidence and appeal.

Court Disposition

Interlocutors of Sheriff and Sheriff-Substitute recalled; cause remitted to Sheriff-Substitute to transfer to ordinary Court for proof on averments of custom.

Orders

  • Recall interlocutors of 3rd January 1912 and 8th September 1911
  • Remit cause to Sheriff-Substitute to transfer to ordinary Court