Limitation periods

Unless the parties have agreed otherwise, the ordinary limitation periods set out in the Limitation Act 1980 apply to arbitration claims: Arbitration Act 1996, s13. Most arbitration claims are for breach of contract, so where the contract is governed by English law there is a six-year limitation period for the commencement of proceedings, running from the date of breach. Where the action is brought in the High Court, proceedings are commenced when a claim form is issued. In the case of arbitration, the parties are free to agree what constitutes the commencement of proceedings, but if they fail to do so then default rules are provided by s14 of the 1996 Act. In Taylor Woodrow Construction v RMD Kwikform Ltd [2008] EWHC 825 (TCC) two questions fell to be decided by Mr Justice Ramsey: was there an agreement between the parties as to when the arbitration proceedings were deemed to have commenced; and, if not, had the claimant satisfied the statutory default rules?

Taylor Woodrow: the facts

The dispute between the parties arose out of a sub-contract made in October 2000 under which RMD agreed to design, supply and erect scaffolding for use by TWC in works being carried out by TWC. The agreement contained an arbitration clause, clause 26, in the following terms: