NHBC, ARBITRATION AND THE COSTS OF AN INVALID ARBITRATION

Crest Nicholson (Eastern) Ltd v Western [2008] EWHC 1325 (TCC), 16 June 2008

In Crest Nicholson (Eastern) Ltd v Western [2008] EWHC 1325 (TCC), 16 June 2008, Mr Justice Akenhead held that the words ‘the form of Buildmark Scheme as prescribed by the National House-Building Council’ in a contract for the sale of a property was a reference to a document entitled ‘the NHBC Buildmark Your warranty and insurance cover Applicable to newly built or converted properties registered with NHBC from 1 October 2006’. Further he held that the latter document did not contain an arbitration agreement so that the arbitrator who had been appointed did not have jurisdiction to resolve the dispute which had arisen between the parties. Finally, he held that a court does not have jurisdiction to make an order for costs in relation to abortive or invalid arbitration proceedings.