Binding non-signatories to arbitration agreements—who are persons 'claiming through or under' a party?. (25th October 2019)

• Record Type: Journal Article
• Authors: Priskich, Vicky
• Is Part Of: Arbitration international. Volume 35:Number 3(2019)
• Page Start: 375
• Page End: 386
• Publication Date: 2019-10-25
• Subjects: Arbitration and award, International -- Periodicals; 341.522
• DOI: 10.1093/arbint/aiz016
• Languages: English
• ISSNs: 0957-0411

Abstract

Abstract: The International Arbitration Acts of the UK, Australia, Singapore, and Hong Kong recognize that third persons who are non-signatories to an arbitration agreement but who are 'claiming through or under' a party to the arbitration agreement have the status of a party. 1 In the UK and Singapore that status means not only that court proceedings involving such non-signatories may be stayed in favour of arbitration but it also binds them to an award. In Hong Kong that status binds non-signatories to an award. In Australia, that status affects whether court proceedings involving non-signatories are stayed in favour of arbitration. A recent judgment by a majority of Australia's highest appeal court, the High Court of Australia, in Rinehart v Hancock Prospecting Pty Ltd 2 has taken a different approach to that prevailing in England as to the range of persons who are capable of 'claiming through or under' a party to the arbitration agreement, thereby significantly expanding the range of disputes involving non-signatories that must be referred to arbitration. 3 The issue has not arisen for determination before appellate courts in Singapore or Hong Kong. Rinehart therefore represents an important development in common law jurisdictions, compelling arbitration between a signatory and non-signatory to an arbitration agreement.