Ewan Robert Carr and  Brookside Farm Trust Limited v Gallaway Cook Allan - SC 27/2013

Summary

Arbitration agreements – Whether the Court of Appeal erred in its approach to the legal test for severance, and in particular, whether essentiality is a factor or whether policy and part performance are the determining factors.  [2013] NZCA 11   CA437/2012 

Result

Leave to appeal is granted.
The approved ground is: 
Should the arbitral award have been set aside?

2 July 2013

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A   The appeal is allowed and the judgment of the High Court setting aside the award of 9 May 2011 is reinstated.
B   The respondent must pay to the appellants costs in this court of $25,000 together with reasonable disbursements. 
C    The order for costs in the Court of Appeal is set aside and the respondent is to pay the appellants’ costs in that Court and the High Court to be fixed by those courts.

20 June 2014