Uncertainty in dispute resolution clauses
Where a dispute arises under a contract, the parties must attempt to settle that dispute through the procedure set out in the dispute resolution clause (DRC). Sometimes, one party considers that this procedure cannot be followed, or does not adhere to the procedure, and instead initiates proceedings in court to resolve the dispute. Where this occurs, the other party to the contract can apply to the court for a stay of those proceedings in order to force the litigious party to fall back upon the contractual procedure. The court’s power to award a stay is discretionary.
The party opposing the stay must persuade the court that there are good grounds for the court to exercise its discretion to allow the court action to proceed and so preclude the contractual mode of dispute resolution. This can be discharged only by showing that, in the particular case, the dispute is not amenable to resolution by the contractual mechanism the parties have chosen. One of these grounds is that the DRC is void for uncertainty…
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
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 DLA Piper
News from The Lawyer
Briefings from DLA Piper
Forbes has dubbed 2014 ‘The Year of the Whistleblower’. For healthcare providers, this designation has translated into millions of dollars in fines.
One current hot topic ‘good faith’. Can it be implied into contracts? If so, what would that mean in practice?
Analysis from The Lawyer
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.