English High Court addresses separability of arbitration clauses

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The English High Court in Beijing Jianlong Heavy Industry Group v Golden Ocean Group Ltd & Ors recently addressed the issue of the separability of arbitration agreements and the circumstances in which public policy factors invalidating the underlying contract may also impeach an arbitration clause.

In its pro-arbitration conclusion, the court reinforced the strength of ‘powerful commercial factors’ that weigh in favour of upholding an agreement to arbitrate.

Separability is a legal doctrine that allows an arbitration agreement to be considered entirely separately from the underlying contract in which it is contained. This is important where there are questions about the enforceability of the underlying agreement…

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