High Court refers dispute between engineering company and construction company to arbitration, on the grounds that the construction company has demonstrated that the requirements of the Model Law have been satisfied and that a dispute exists between the parties in respect of the engineering company’s entitlement to judgement in the sum now claimed in the summary proceedings.
Arbitration – application for an order under Article 8 (1) of the UNCITRAL Model Law on International Commercial Arbitration (the “Model Law”)as incorporated into Irish law by s. 6 of the Arbitration Act, 2010 referring the parties to arbitration – argued that there were two arbitration agreements between the parties which apply to the issues raised – factual background – construction company hired engineering company to provide mechanical works in relation to two projects – both contracts contained arbitration clauses - differences between the parties - commencement and progress of proceedings - application to refer to arbitration under Article 8(1) of the Model Law - dispute between the parties - no dispute between the parties with respect to the sum for which the plaintiff now seeks summary judgment under the first contract – relevant clauses of the subcontract - required approach pursuant to the Model law - contentions of the parties - whether the requirements of Article 8 of the Model law have been complied with - mandatory obligation on the court to make an order referring the parties to arbitration in respect of the matters the subject of the summary proceedings – construction company did comply with the requirements in v Article 8(1) and that, therefore, the court is subject to a mandatory obligation under Article 8(1) to make an order referring the parties to arbitration, provided that a dispute exists between the parties - court has an inherent jurisdiction to stay proceedings - whether a dispute exists between the parties - dispute as a matter of law - the enactment of the 2010 Act and the introduction into Irish law of Article 8(1) of the Model Law had the same effect as the changes effected by s. 9(4) of the English 1996 Act to the law which predated that legislation - court is not concerned with the merits of that dispute in the sense of whether or not the party seeking the reference to arbitration has or has not established an arguable or credible defence such as would entitle that party successfully to resist an application for summary judgment in respect of that claim - whether a dispute can be said to exist between parties in the context of an arbitration agreement and Article 8(1) of the Model Law - principles applicable to the interpretation of contracts may also be relevant in interpreting the meaning to be given to that term in the relevant agreement - interpretation of the term “dispute” - dispute as a matter of fact – construction company has put forward sufficient material to establish that there is a dispute between the parties in relation to the sum claimed by the engineering company in the proceedings - other disputes – construction company has demonstrated that the requirements of Article 8(1) of the Model Law have been satisfied and that a dispute exists between the parties in respect of the engineering company’s entitlement to judgment in the sum now claimed in the summary proceedings – proceedings referred to arbitration – other matters in dispute referred to arbitration –