Title

XIV.1.3 - Arbitration agreement and substantive claim before court

Content

No. XIV.1.3 - Arbitration agreement and substantive claim before court

(a) A court before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party so requests not later than when submitting his first statement on the substance of the dispute, refer the parties to arbitration unless it finds that the agreement is null and void, inoperative or incapable of being performed.

(b) Where an action referred to in paragraph (a) of this Principle has been brought, arbitral proceedings may nevertheless be commenced or continued, and an award may be made, while the issue is pending before the court.

Commentary

Subsection (b) serves to avoid delays in the arbitration but is not mandatory ("...may..."). If the arbitral tribunal has serious doubts as to its jurisdiction (i.e. as to the validity of the arbitration agreement), it can always suspend the proceedings and await the decision of the court before proceeding with the arbitration.

References

National Legislation

Austrian Arbiration Law 2006English Arbitration Act 1996Scottish Arbitration Bill 2009US Uniform Arbitration Act 2000Zivilprozessordnung - German Code of Civil Procedure

Court Decisions

Energy Transport Ltd. v. M.V. San Sebastian, 348 F Suppl. 2d 186Hudson v Conagra Poultry Company, 484 F.3d 496

International Legislation

UNCITRAL Model Law on International Commercial ArbitrationUnited Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958 (New York Convention)

Model Laws

UNCITRAL Model Law on International Commercial Arbitration with Amendments, 2006

Contract Clauses

1. Waiving of Right to resolve Dispute throughout a Court Employment Contract