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02 October 2008
Issue: 7339 / Categories: Legal News , Arbitration
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Unfair arbitration

Arbitration

Businesses that contract with consumers must ensure that arbitration clauses are fully explained at the time the contract is entered into, warn lawyers.

In Mylcrist Builders Limited v Mrs G Buck a judge refused to enforce an arbitration award against the defendant (a consumer) who had engaged the firm on its standard terms and conditions which included an arbitration clause.

The court found the arbitrator had not been properly appointed however, and that the related clauses were not binding. The judge held that the inclusion of the clause had caused a significant imbalance in the parties’ rights and obligations under the contract, to the detriment of the defendant.

Steven Friel, partner at Davies Arnold Cooper LLP, says: “English courts have gone to great lengths recently to uphold arbitration clauses, on the basis that arbitration should be considered a stand alone dispute resolution process and relatively free from interference from the courts”.

However, the judgment means that arbitration clauses could be considered unfair in consumer contracts, says Friel.

“In this case the court decided that consumer protection

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NEWS
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Recent allegations surrounding Peter Mandelson and Andrew Mountbatten-Windsor have reignited scrutiny of the ancient common law offence of misconduct in public office. Writing in NLJ this week, Simon Parsons, teaching fellow at Bath Spa University, asks whether their conduct could clear a notoriously high legal hurdle
A landmark ruling has reshaped child clinical negligence claims. Writing in NLJ this week, Jodi Newton, head of birth and paediatric negligence at Osbornes Law, explains how the Supreme Court in CCC v Sheffield Teaching Hospitals NHS Foundation Trust [2026] UKSC 5 has overturned Croke v Wiseman, ending the long-standing bar on children recovering ‘lost years’ earnings
A Court of Appeal ruling has drawn a firm line under party autonomy in arbitration. Writing in NLJ this week, Masood Ahmed, associate professor at the University of Leicester, analyses Gluck v Endzweig [2026] EWCA Civ 145, where a clause allowing arbitrators to amend an award ‘at any time’ was held incompatible with the Arbitration Act 1996
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