Jurisdiction of arbitrators: effect of subsequent settlement on arbitration clause

It is common for the parties to a contract containing an arbitration clause to settle any disputes under that contract by a voluntary settlement agreement containing its own dispute resolution procedures. The issue in Monde Petroleum SA v WesternZagros Ltd [2015] EWHC 67 (Comm) was whether the arbitration clause revived if the settlement agreement was to be set aside.

In the present case the validity of the settlement agreement had yet to be determined, and the question for the arbitrators was whether they had jurisdiction to hear claims under the original contract.