INTERSERVE INDUSTRIAL SERVICES LTD V ZRE KATOWICE SA

[2012] EWHC 3205 (TCC), Queen's Bench Division, Technology and Construction Court, HHJ David Grant, 9 November 2012

Arbitration - Stay of proceedings - Dispute arising under sub-contract containing arbitration clause - Dispute resolved by settlement - Whether settlement was subject to arbitration clause - Arbitration Act 1996, section 9

The parties entered into a construction contract under which works were sub-contracted under which the claimant sub-contractor agreed to carry out works for the defendant contractor. In the event of any dispute, the parties were to try to settle the dispute amicably, but either had the right to refer the dispute to adjudication or arbitration. Disputes arose in 2011, and in December 2011 the parties entered into a settlement agreement under which sums were to be paid in instalments to the claimant. The December 2011 agreement provided that all disputes were subject to the exclusive jurisdiction of the English courts. The claimant brought proceedings for breach of the December 2011 agreement, and the defendant sought a stay under section 9 of the Arbitration Act 1996 or in the court's inherent jurisdiction. The court granted a stay under the 1996 Act. There was an implied term of the December agreement that it would be subject to the same dispute resolution provisions as were found in the subcontract.