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Arbitration Jurisdiction
Court of Appeal
May, Rix and Hooper LJJ
[2005] EWCA Civ 291
[2005] 12 EG 219 (CS)
17 March 2005
Construction contract - Standard arbitration clause - Employer alleging breach of contract by appellant - Whether "dispute" between parties - Whether valid decision of engineer as condition precedent to arbitration - Scope of arbitration - Appeal dismissed
The appellant carried out substantial renovation works to a motorway viaduct pursuant to a contract with the respondent. The contract incorporated clause 66 of the Institution of Civil Engineers standard conditions of contract, which provided for dispute or differences to be, in the first instance, referred to and settled by the contracted engineer. If the engineer failed to give a decision within three months of the referral, or if either party were dissatisfied with the decision given, the matter could be referred to arbitration.
Defects later appeared in the viaduct. Pending any full investigation of the defects and their cause, the appellant indicated that it did not accept responsibility. In December, the respondent wrote to the appellant alleging that it was in breach of contract, and inviting it to confirm this by a date four days from the date of the letter. The appellant replied that it was not in a position to comment on liability. The respondent referred the matter to the engineer, against which there was also a possible claim in respect of...