Buchan v. Melville [1902] ScotLR 39_398 (28 February 1902)

Buchan v. Melville [1902] ScotLR 39_398 (28 February 1902)

A reference to one of the contracting parties as sole arbiter is valid and binding if the other party, when agreeing to the reference, was aware of the arbiter's interest. The defender was not disqualified by acting as arbiter, despite being a party and having defended himself, as this was known and contemplated at the time of contract. The pursuer is bound by the arbitration clause and the award issued by the defender.

Citation
[1902] ScotLR 39_398
Parties
Pursuer: William Buchan; Defender: Alexander Melville
Jurisdiction
Scotland
Judgment Date
28 February 1902
Procedural Posture
Civil / Appeal From Sheriff Court Decision
Outcome
appeal refused; action dismissed
Legal Topics
Arbitration Clause, Disqualification of Arbiter, Building Contract, Reference to Party as Arbiter
Contract Arbitration Arbitration Clause Disqualification of Arbiter Building Contract Reference to Party as Arbiter

Case Brief

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Parties

William Buchan

Pursuer

Alexander Melville

Defender

Procedural Posture

Civil / Appeal From Sheriff Court Decision

Legal Issues

  1. 1 Is a reference to one contracting party as sole arbiter valid and binding?
  2. 2 Does the defender's interest or conduct disqualify him from acting as arbiter?
  3. 3 Are the conditions of contract, including the arbitration clause, binding on the pursuer?

Ratio Decidendi

A reference to one of the contracting parties as sole arbiter is valid and binding if the other party, when agreeing to the reference, was aware of the arbiter's interest. The defender was not disqualified by acting as arbiter, despite being a party and having defended himself, as this was known and contemplated at the time of contract. The pursuer is bound by the arbitration clause and the award issued by the defender.

Court Disposition

appeal refused; action dismissed

Orders

  • Find in terms of the findings in fact and law in the interlocutors of the Sheriff-Substitute dated 11th March and 14th June 1901
  • Refuse the appeal