Lin and Anor v Lee

Lin and Anor v Lee involved proceedings brought by the plaintiffs against the defendant, alleging breach of contract and negligence. The dispute centred around the interpretation of a contractual dispute resolution clause. Specifically, the defendant argued that clause 11 of the contract constituted an arbitration agreement within the meaning of the Commercial Arbitration Act 2013, which would require the court to refer the parties to arbitration and stay the proceedings. The plaintiffs, however, contended that clause 12 of the contract constituted an exclusive jurisdiction clause that precluded the defendant from relying on any arbitration agreement.

The court had to determine whether clause 11 constituted an arbitration agreement under the Commercial Arbitration Act 2013. If it did, the court would be required to refer the parties to arbitration unless it found that the agreement was null and void, inoperative, or incapable of being performed. The court examined the language of clause 11 and considered whether it clearly and unequivocally referred disputes to arbitration. The court also assessed whether the parties had intended to create a binding arbitration agreement. The court found that clause 11 did not constitute an arbitration agreement as it did not unequivocally refer disputes to arbitration. Instead, it required the parties to first attempt to resolve disputes themselves, only referring the dispute to arbitration if they failed to reach an agreement within 21 days.

Given that clause 11 did not constitute an arbitration agreement, the court did not need to refer the parties to arbitration or stay the proceedings. The court dismissed the defendant's application and noted that it would hear the parties regarding costs.