EMIRATES TRADING AGENCY LLC V PRIME MINERAL EXPORTS PRIVATE LTD

[2014] EWHC 2104 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Teare, 1 July 2014

Arbitration - Jurisdiction - Agreement to resolve dispute by friendly discussion - Whether compliance was a condition precedent to the right to go to arbitration - Whether conditions satisfied - Arbitration Act 1996, section 67

ETA agreed to purchase iron ore from PMEPL under a long term contract (LTC). Clause 11 of the LTC provided for arbitration, but was subject to the condition that "In case of any dispute or claim arising out of or in connection with or under this LTC ... the Parties shall first seek to resolve the dispute or claim by friendly discussion. Any party may notify the other Party of its desire to enter into consultation to resolve a dispute or claim. If no solution can be arrived at in between the Parties for a continuous period of 4 (four) weeks then the non-defaulting party can invoke the arbitration clause and refer the disputes to arbitration". PMEPL commenced arbitration some months after a dispute had arisen, and ETA sought an order under section 67 of the Arbitration Act 1996 to the effect that clause 11 was a condition precedent and that arbitration could not commence until its terms had been satisfied.