Arbitration—Jurisdiction—Conditions precedent

Queen’s Bench Division, Commercial Court, Teare J, 1 July 2014

The High Court has concluded that it is not bound by authority to hold that a dispute resolution clause in an existing and enforceable contract which requires the parties to seek to resolve a dispute by friendly discussions in good faith and within a limited period of time before the dispute may be referred to arbitration is unenforceable.

Vasanti Selvaratnam QC (instructed by Clyde & Co LLP) for the claimant. David Brynmor Thomas (instructed by Addleshaw Goddard LLP) for the defendant.

The claimant entered into a contract to purchase iron ore from the defendant. Clause 11.1 provided: “In case of any dispute or claim arising out of or in connection with or under this LTC including on account of a breaches/defaults mentioned in 9.2, 9.3, Clauses 10.1(d) and/or 10.1(e) above, the parties shall first seek to resolve the dispute or claim by friendly discussion. Any party