Stay of proceedings: taking a step in the proceedings

Under section 9(3) of the Arbitration Act 1996 the right to seek a stay of judicial proceedings so that the dispute can be referred to arbitration in accordance with the parties' agreement is lost if the applicant for a stay has taken a step in the proceedings. In Fairpark Estates Ltd v Heals Property Developments Ltd [2022] EWHC 496 (Ch) HHJ Richard Williams, sitting as a High Court Judge, held that an agreement to extend time for the service of a defence and counterclaim constituted a step in the proceedings in that it amounted to an election not to go to arbitration and also invoked the jurisdiction of the court.

Fairpark : the facts