The existence of a dispute

Arbitration clauses often impose time limits upon a potential claimant who wishes to commence arbitration. The trigger for the running of time is often clearly defined, eg, in a cargo claim, 12 months from the discharge of the cargo. Insurance policies may specify time limit triggers of various types, most commonly a period starting from the date on which the claim is refused by the insurers. In William McIlroy Swindon Ltd v Quinn Insurance Ltd [2010] EWHC 2448 (TCC) the arbitration clause referred to the existence of a dispute, giving rise to a complex question of exactly when a dispute arises under a contract of liability insurance. The conclusion reached by Edwards-Stuart J on this point open to doubt.

McIlroy: the facts

The assured in this case was a building and roofing contractor, Lenihan, which had entered into a contract of liability insurance with Quinn as insurers in July 2004, the policy being renewed annually in 2005 and 2006. Cover had been arranged for McIlroy by its brokers. General Condition 16, the arbitration clause, provided as follows: