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25 October 2007
Issue: 7294 / Categories: Legal News , Procedure & practice , Arbitration
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Law lords take tough line on arbitration clauses

News

Arbitration clauses should be presumed to cover any dispute concerning the relationship between the relevant parties, unless the contrary is clear from the wording, the House of Lords has ruled.

The Law Lords’ landmark decision for international arbitration in Premium Nafta v Fili Shipping upholds the decision of the Court of Appeal.
It was also held that under the doctrine of separability, an arbitration agreement must be treated as a distinct agreement and can be void or voidable only on grounds related directly to the arbitration agreement. The arbitration agreement will generally be unaffected by the invalidity of the main contract, whether that invalidity be based on illegality, misrepresentation, fraud or, as alleged in the Premium Nafta case, bribery.

Nicholas Hamblen QC, of 20 Essex Street, who acted for the successful respondent, says the decision will make it more difficult for parties to contend that particular types of disputes are not covered by the arbitration agreement they have made.

He adds: “It will also make it far more difficult

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MOVERS & SHAKERS

Winckworth Sherwood—Charlotte Coleman & Qaisar Sheikh

Winckworth Sherwood—Charlotte Coleman & Qaisar Sheikh

Two promoted to partner in property litigation and education teams

Dorsey & Whitney LLP—Peter Knust

Dorsey & Whitney LLP—Peter Knust

Cross-border finance and restructuring specialist joins as of counsel in London

Powell Gilbert—Callum Beamish-Lacey

Powell Gilbert—Callum Beamish-Lacey

IP firm promotes litigator to partnership

NEWS

From blockbuster judgments to procedural shake-ups, the courts are busy reshaping litigation practice. Writing in NLJ this week, Professor Dominic Regan of City Law School hails the Court of Appeal's 'exquisite judgment’ in Mazur restoring the role of supervised non-qualified staff, and highlights a ‘mammoth’ damages ruling likened to War and Peace, alongside guidance on medical reporting fees, where a pragmatic 25% uplift was imposed

Momentum is building behind proposals to restrict children’s access to social media—but the legal and practical challenges are formidable. In NLJ this week, Nick Smallwood of Mills & Reeve examines global moves, including Australia’s under-16 ban and the UK's consultation
Reforms designed to rebalance landlord-tenant relations may instead penalise leaseholders themselves. In this week's NLJ, Mike Somekh of The Freehold Collective warns that the Leasehold and Freehold Reform Act 2024 risks creating an ‘underclass’ of resident-controlled freehold companies
Timing is everything—and the Court of Appeal has delivered clarity on when proceedings are ‘brought’. In his latest 'Civil way' column for NLJ, Stephen Gold explains that a claim is issued for limitation purposes when the claim form is delivered to the court, even if fees are underpaid
The traditional ‘single, intensive day’ of financial dispute resolution (FDR) may be due for a rethink. Writing in NLJ this week, Rachel Frost-Smith and Lauren Guiler of Birketts propose a ‘split FDR’ model, separating judicial evaluation from negotiation
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