Our case update on an arbitration clause in the main agreement being an implied term in the settlement agreement has been picked up by Singapore Law Watch (“SLW“). Our SLW Commentary can be found here.
The SLW Commentary examines an English High Court decision which considers the situation in which a dispute between parties under a main contract is resolved pursuant to a settlement agreement, but then a subsequent dispute arises under the settlement agreement. In that situation, what happens when the main contract contains an arbitration clause, but the settlement agreement does not? Where an arbitration clause is an implied term in the settlement agreement, court proceedings taken out pursuant to that settlement agreement will be stayed in favour of arbitration. We also look at how the Singapore courts might approach this same issue and how the Singapore and English courts will reconcile an exclusive jurisdiction clause in favour of the courts alongside an arbitration clause in the same agreement.