BDMS LTD V RAFAEL ADVANCED DEFENCE SYSTEMS

[2014] EWHC 451 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Hamblen, 26 February 2014

Arbitration - Stay of proceedings - Rules of the International Chamber of Commerce - Refusal of defendant to pay its share of advance costs without security - Arbitration reference revoked - Whether agreement rendered inoperative - Arbitration Act 1996, section 9(4)

The parties entered into a consultancy agreement in October 2002. Under clause 7, the parties agreed to submit all disputes and differences to arbitration under the rules of the International Chamber of Commerce, with the seat of the arbitration in London. The ICC Rules provided that advance costs were to be fixed by the ICC and were to be paid in equal shares by the parties although one party could pay the full amount. If payment was not made, the claims were to be treated as withdrawn.