Citation: EWHC 3019 (TCC)
Nature of case: Following a disputed item of loss arising from Turville’s claim against Chartis for losses caused by a fire to a property owned by Turville, Chartis sought a stay of proceedings pursuant to section 9 of the Arbitration Act 1996 and in the alternative, pursuant to the inherent jurisdiction of the court under section 49 of the Senior Courts Act 1981. Edwards-Stuart J rejected Chartis’ application for a stay of proceedings under the arbitration clause from the insurance contract between the parties on the basis that the arbitration clause did not fall within the ambit of the Arbitration Act 1996. This was because it provided that each party could select an ‘independent appraiser’ in the event that an item of loss was disputed and that the operation of the arbitration clause in this case would not necessarily produce a decision that would be binding. However, Edwards-Stuart J exercised the Court’s broad case management powers in holding that in the interests of fairness, and given the amount of money invested in resolving the dispute through the independent appraisers, the arbitration clause process should continue and that proceedings in Court should be stayed.