Leighton Contractors Pty Limited v Belmont 16ft Sailing Club Limited

Leighton Contractors Pty Limited, the builder, and Belmont 16ft Sailing Club Limited, the employer, were in dispute over the construction of a new club house. The contract contained an arbitration clause, and the employer referred the dispute to arbitration. The builder argued that certain claims in tort and under the Trade Practices Regulations were not covered by the arbitration clause. The court was required to decide whether the arbitration clause was broad enough to encompass these claims.

The court held that the arbitration clause was not limited to disputes arising out of the contract and included all disputes between the parties, whether contractual or not. The clause was broad enough to cover claims in tort and under the Trade Practices Regulations, as these claims arose out of the same transaction as the contract. The court found that the employer's claims were within the scope of the arbitration clause, and the builder was required to submit to arbitration.

Leighton Contractors Pty Limited was ordered to submit to arbitration all disputes with Belmont 16ft Sailing Club Limited, including those in tort and under the Trade Practices Regulations. The court dismissed the builder's application to set aside the employer's reference to arbitration.