BOGSIDE INVESTMENTS LTD AGAINST CHRISTOPHER LINFORD SHUTE AND ANOTHER [2023] ScotCS CSOH_25 (25 April 2023)

BOGSIDE INVESTMENTS LTD AGAINST CHRISTOPHER LINFORD SHUTE AND ANOTHER [2023] ScotCS CSOH_25 (25 April 2023)

The pursuer is not a party to the Shareholder Agreement and did not agree to arbitration; the alleged fraud predates and is unrelated to the agreement, so the claim does not fall within the scope of the arbitration clause. The motion to sist proceedings for arbitration is refused.

Citation
[2023] ScotCS CSOH_25
Parties
Pursuer: Bogside Investments Limited; First Defender: Christopher Linford Shute; Second Defender: Graeme Paterson
Jurisdiction
Scotland
Judgment Date
25 April 2023
Procedural Posture
Commercial Action for Damages / Motion to Sist Proceedings for Arbitration
Outcome
motion to sist refused
Legal Topics
Arbitration Agreement, Corporate Personality, Fraudulent Misrepresentation, Stay of Proceedings
Arbitration Contract Law Company Law Arbitration Agreement Corporate Personality Fraudulent Misrepresentation Stay of Proceedings

Case Brief

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Parties

Bogside Investments Limited

Pursuer

Christopher Linford Shute

First Defender

Graeme Paterson

Second Defender

Procedural Posture

Commercial Action for Damages / Motion to Sist Proceedings for Arbitration

Legal Issues

  1. 1 Whether the pursuer is bound by the arbitration clause in the Shareholder Agreement
  2. 2 Whether the dispute falls within the scope of the arbitration clause
  3. 3 Whether proceedings should be sisted for arbitration under section 10 of the Arbitration (Scotland) Act 2010

Ratio Decidendi

The pursuer is not a party to the Shareholder Agreement and did not agree to arbitration; the alleged fraud predates and is unrelated to the agreement, so the claim does not fall within the scope of the arbitration clause. The motion to sist proceedings for arbitration is refused.

Court Disposition

motion to sist refused

Orders

  • case to be put out By Order to discuss further procedure