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Important judgment on pre-conditions in arbitration clauses | Bryan Cave Leighton Paisner

Important judgment on pre-conditions in arbitration clauses | Bryan Cave Leighton Paisner
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Compliance with preconditions to arbitration a matter of admissibility, not jurisdiction

In its decision in
Sierra Leone v SL Mining Ltd,(1) the High Court confirmed that alleged non-compliance with the provisions of a multi-tiered dispute resolution clause (in particular, the submission of claims to arbitration prior to the end of a prescribed period of negotiation) is exclusively a matter of admissibility for the arbitral tribunal and cannot lead to a successful jurisdictional challenge under Section 67 of the Arbitration Act 1996. This decision confirms the scope of a London-seated tribunal s substantive jurisdiction under Section 30(1) of the Arbitration Act. It also confirms that initiation of arbitration proceedings, in apparent breach of a mandatory multi-tiered dispute resolution clause, may be valid where settlement of the dispute is deemed impossible within the remaining prescribed period. ....

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Republic Of Sierra Leone V SL Mining Ltd: The English Commercial Court Rules On The Effect Of Non-Compliance With A Multi-Tier Dispute Resolution Provision - Litigation, Mediation & Arbitration

On 15 February 2021, the English Commercial Court in
Republic of Sierra Leone v. SL Mining Ltd [2021] EWHC 286
(Comm) ruled on the effect of non-compliance with a multi-tier
dispute resolution provision. The decision (available
here) settles a difficult question of English arbitration
law.
In summary the English Commercial Court held that:
Non-compliance with a multi-tier dispute resolution provision
is an issue of admissibility (
i.e. whether the claim is
ripe to be heard) rather than jurisdiction (
i.e. whether
the tribunal is competent to hear the claim at all).
Whether a party has complied with a multi-tier dispute
resolution provision is a procedural matter which falls within the ....

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Republic of Sierra Leone v SL Mining Ltd: The English Commercial Court Rules On The Effect Of Non-Compliance With A Multi-Tier Dispute Resolution Provision | WilmerHale

On 15 February 2021, the English Commercial Court in
Republic of Sierra Leone v. SL Mining Ltd [2021] EWHC 286 (Comm) ruled on the effect of non-compliance with a multi-tier dispute resolution provision. The decision (available here) settles a difficult question of English arbitration law.
In summary the English Commercial Court held that:
Non-compliance with a multi-tier dispute resolution provision is an issue of admissibility (
i.e. whether the claim is ripe to be heard) rather than jurisdiction (
i.e. whether the tribunal is competent to hear the claim at all).
Whether a party has complied with a multi-tier dispute resolution provision is a procedural matter which falls within the competence of the tribunal rather than the English Court to determine. ....

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Commercial Court: Compliance With Arbitral Preconditions a Question of Admissibility | Latham & Watkins LLP

The decision clarifies the circumstances under which an arbitral award might be challenged.
A recent decision by the English Commercial Court indicates that failure to comply with a precondition to arbitration (such as an obligation to negotiate) calls into question the admissibility of a claim, rather than calling into question the jurisdiction of the arbitrators to hear such a claim. As parties to arbitration can only challenge an award through the English courts under s. 67 of the Arbitration Act 1996 (the Act) for lack of jurisdiction, and not in relation to the admissibility of a claim, the decision suggests that s. 67 may not be available to bring challenges concerned with a failure to comply with such preconditions to arbitration. ....

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