Turning point for enforceable ‘friendly discussions’ before arbitration
In a recent controversial decision, the court held that a dispute resolution clause, which required the parties to the contract to enter into ‘friendly discussion’ before arbitration proceedings were started, was enforceable.
The reason that this decision is controversial is that it is seemingly at odds with the existing English law. In general, English law does not recognise an agreement to negotiate or an agreement to settle disputes amicably. In previous cases, such agreements have been held ‘too uncertain’ to enforce. As such, this case appears to mark a turning point in the enforcement of such clauses under English law.
The background facts of the dispute are not particularly relevant. It is sufficient to simply say that a dispute arose between the parties and the contract contained a clause that they should seek to resolve any dispute by ‘friendly discussion…for a continuous period of four weeks’. If a resolution was not achieved, the dispute could then be referred to arbitration…
Click on the link below to read the rest of the Gateley briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Gateley
News from The Lawyer
Briefings from Gateley
2014 again saw many small and mid-size companies encouraged to address continued shareholder activism and a keener focus on corporate governance.
In this post, Philip Lloyd Williams, principal of Lloyd Williams & Associates, shares his top tips in having a difficult conversation and how to avoid making matters worse.
Analysis from The Lawyer
The Law Society recently published guidance to assist solicitors draw up Shariah-compliant wills, causing outrage in some quarters. Gateley’s Haroon Rashid explains the facts.