In Delta Reclamation Ltd v Premier Waste Management Ltd – Butterworths Law Direct 25.10.08 a dispute arose between the parties as to the validity of a contract.
The Claimant sought injunctive relief under s 44 of the Arbitration Act 1996, and in the alternative sought damages and interest for breach of contract. The claim was not made by way of arbitration claim form under CPR Part 62 but by an ordinary claim form under CPR Part 7. The application was dismissed.
The Claimant then served a notice of arbitration, seeking damages. The Defendant did not reply to the notice but filed a notice of defence and counterclaim with the court.
The Claimant applied for a stay of the counterclaim under s 9 of the 1996 Act.
It was held that the proceedings had to be stayed. The Claimant had not repudiated the arbitration clause by seeking interim relief, so it had not been rendered inoperative: there was therefore no basis for refusing a stay.