Last updateTue, 24 Feb 2015 5pm

ARBITRATION: Spoilt for choice, or a choice spoiled?

23 November 2012  

Richard Oliver examines recent judicial developments on the treatment of sole option dispute resolution clauses

A ‘sole option’ dispute resolution clause is a clause giving one party to a contract an option to refer a dispute to the courts while the other party (or parties) must refer all disputes to arbitration. These clauses are also seen the other way round, so that all disputes stand to be referred to the courts except for one party having the option to commence arbitration instead. The validity of such clauses is recognised in many, though not all, jurisdictions.

Additional Info

  • Case(s) Referenced:

    RTC v Sony-Ericsson The Resolution of the Presidium of the Supreme Arbitrazh Court of the Russian Federation No. 1831/12 dated 19 June 2012 in the matter of Closed Joint Stock Company ‘Russian Telephone Company’ and Limited Liability Company ‘Sony Ericsson Mobile Communications Rus’

    Law Debenture Trust Corporation plc v Elektrim Finance BV & ors [2005] EWHC 1412 (Ch)

    NB Three Shipping Ltd v Harebell Shipping Ltd [2004] EWHC 2001 (Comm)

    Suda v Czech Republic (1643/06) 28 October 2010