The Licenses Insurance Corporation and Guarantee Fund, Ltd v. Shearer and Others [1906] ScotLR 44_6 (26 October 1906)

The Licenses Insurance Corporation and Guarantee Fund, Ltd v. Shearer and Others [1906] ScotLR 44_6 (26 October 1906)

The Court will not interfere with arbitration proceedings that are ex facie regular and where the arbiter is ex facie well appointed, unless it is made perfectly plain that the arbiter lacks jurisdiction. The subsequent ratification by Wilson, even after the expiry of the contractual period, was sufficient to allow the arbitration to proceed, and any disputes as to authority or mandate are matters for the arbiters to determine.

Citation
[1906] ScotLR 44_6
Parties
Complainer: The Licenses Insurance Corporation and Guarantee Fund, Limited; Respondent: W. & R. B. Shearer; Respondent: James Wilson; Respondent: William Shaw
Jurisdiction
Scotland
Judgment Date
26 October 1906
Procedural Posture
Note of Suspension and Interdict / Inner House, Second Division, Reclaiming Motion Against Lord Ordinary's Interlocutor
Outcome
Reclaiming motion refused; interlocutor of Lord Ordinary adhered to.
Legal Topics
Contractual Arbitration, Agency and Ratification, Jurisdiction of Arbiters, Interdict Against Arbitration Proceedings
Arbitration Contract Law Insurance Law Contractual Arbitration Agency and Ratification Jurisdiction of Arbiters Interdict Against Arbitration Proceedings

Case Brief

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Parties

The Licenses Insurance Corporation and Guarantee Fund, Limited

Complainer

W. & R. B. Shearer

Respondent

James Wilson

Respondent

William Shaw

Respondent

Procedural Posture

Note of Suspension and Interdict / Inner House, Second Division, Reclaiming Motion Against Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether the arbitration was validly constituted under the insurance policy
  2. 2 Whether acts of agents without prior written authority could be ratified after the contractual time limit
  3. 3 Whether the Court should interdict arbitration proceedings ex facie regular

Ratio Decidendi

The Court will not interfere with arbitration proceedings that are ex facie regular and where the arbiter is ex facie well appointed, unless it is made perfectly plain that the arbiter lacks jurisdiction. The subsequent ratification by Wilson, even after the expiry of the contractual period, was sufficient to allow the arbitration to proceed, and any disputes as to authority or mandate are matters for the arbiters to determine.

Court Disposition

Reclaiming motion refused; interlocutor of Lord Ordinary adhered to.

Orders

  • Refusal of note of suspension and interdict; arbitration proceedings to continue.