Consumer arbitrations: stay of proceedings

In Soleymani v Nifty Gateway LLC [2022] EWCA Civ 1297 the Court of Appeal has reversed the first instance decision of Clare Ambrose, sitting as a Deputy High Court Judge, [2022] Lloyd’s Rep Plus 103. Ms Ambrose considered a series of difficult questions concerning the binding effect of arbitration clauses in consumer contracts. The points arose because the arbitration clause was governed by New York law and the seat of the arbitration was New York.

That gave rise complexities in the interplay between the control of consumer arbitration clauses under the Consumer Rights Act 2016 and the statutory principle that consumers domiciled in England have the right to sue in England. The stay granted by Ms Ambrose was lifted by the Court of Appeal in favour of a trial of the issues in England.