Cape Lambert Resources Ltd v MCC Australia Sanjin Mining Pty Ltd

In the case of Cape Lambert Resources Ltd v MCC Australia Sanjin Mining Pty Ltd, the dispute centred around the enforceability of a dispute resolution clause in a contract between the parties, and the applicability of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. The case was heard by the Supreme Court of New South Wales.

The legal issues before the court included whether the dispute resolution clause in the contract constituted an arbitration agreement, whether there was sufficient reason to refuse to refer the dispute to arbitration, whether the applicant was ready and willing to do all things necessary for the proper conduct of an arbitration, whether the relationship between the parties to a guarantee was a commercial relationship for the purpose of reservations by the People's Republic of China to the application of the New York Convention, and whether an interim order should be made for the payment of a disputed amount into an escrow account. Additionally, the court considered whether an interlocutory injunction should be granted requiring payment into an escrow account.

The court held that the dispute resolution clause in the contract was indeed an arbitration agreement, and that there was no sufficient reason to refuse to refer the dispute to arbitration. The court also found that the applicant was ready and willing to do all things necessary for the proper conduct of an arbitration. However, the court held that the relationship between the parties to a guarantee was not a commercial relationship for the purpose of reservations by the People's Republic of China to the application of the New York Convention. The court ultimately refused to make an interim order for the payment of the disputed amount into an escrow account, and also refused to grant an interlocutory injunction requiring payment into an escrow account.

The court's final orders included dismissing the application for an interim order for payment into an escrow account, and dismissing the application for an interlocutory injunction requiring payment into an escrow account. The court held that the dispute should proceed to arbitration in accordance with the terms of the contract.