M'Connell & Reid v. Smith [1911] ScotLR 564 (07 March 1911)

M'Connell & Reid v. Smith [1911] ScotLR 564 (07 March 1911)

The contract did not provide the defender with reasonable notice that disputes would be subject to arbitration, and thus did not oust the jurisdiction of the courts. The arbitration clause was not binding on the defender, and the action to enforce the incomplete arbitral award was incompetent.

Citation
[1911] ScotLR 564
Parties
Pursuer: M'Connell & Reid; Defender: Robert Smith
Jurisdiction
Scotland
Judgment Date
07 March 1911
Procedural Posture
Civil Appeal / Appeal From Sheriff Court to Court of Session Inner House Second Division
Outcome
appeal dismissed
Legal Topics
Incorporation of Arbitration Clauses, Notice of Contract Terms, Competency of Arbitral Awards, Ouster of Court Jurisdiction
Contract Law Arbitration Incorporation of Arbitration Clauses Notice of Contract Terms Competency of Arbitral Awards Ouster of Court Jurisdiction

Case Brief

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Parties

M'Connell & Reid

Pursuer

Robert Smith

Defender

Procedural Posture

Civil Appeal / Appeal From Sheriff Court to Court of Session Inner House Second Division

Legal Issues

  1. 1 Whether a side-note referencing arbitration rules in a sale-note gives sufficient notice to bind a non-member purchaser to arbitration and oust court jurisdiction.
  2. 2 Whether an action to enforce an incomplete arbitral award is competent.

Ratio Decidendi

The contract did not provide the defender with reasonable notice that disputes would be subject to arbitration, and thus did not oust the jurisdiction of the courts. The arbitration clause was not binding on the defender, and the action to enforce the incomplete arbitral award was incompetent.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed.
  • Interlocutor appealed against affirmed.