*BDMS Ltd v Rafael Advanced Defence Systems

Arbitration – Stay of court proceedings. A dispute arose in respect of sums allegedly due to the claimant from the defendant by way of 'success fees' under a consultancy agreement 9the agreement). The claimant referred a dispute to arbitration. The defendant refused to pay an advance on costs, as required under the Arbitration Rules. The claimant treated the agreement as repudiated and withdrew the proceedings, and commenced proceedings in the High Court. The Chancery Division granted the defendant's application for a stay, having found that, whilst the defendant's failure to pay an advance on cost involved a breach of the arbitration agreement, the breach had not been repudiatory and the arbitration agreement had not been rendered not inoperative.

Category: