The Courts power to stay for non court based dispute resolution in action

In the case cited below, the court stayed the proceedings to allow the parties to engage in an arbitration process set out in the contract between them. 

The Claimant argued that the arbitration clause did not apply to the exact facts of the dispute. However the Court gave the provision its widest possible interpretation, and that the provision was a “one stop shop” for all disputes arising under the contract. 

The case shows that where there is a contractual mechanism to resolve the disputes between the parties, then that will be the courts preferred approach. Therefore, a defendant's application to stay the proceedings to invoke the contractual process is likely to be successful. 

Dandara South East Ltd v Medway Preservation Ltd & Anor [2024] EWHC 2318 (Ch) (10 September 2024) (bailii.org)