Adam Samuel SECTION 7 - SEPARABILITY

SECTION 7 n Unless otherwise agreed n Arbitration agreement intended or did form part of another agreement n Not invalid because contract invalid, never came into existence or ineffective n For this purpose – a distinct agreement

SEPARABILITY – SOME HISTORY n 1698 Act – order of Court n 1746 Kill v. Hollister – ouster n 1802 Kent v. Elstob – error on face n Code Napoleon – prohibition of arbitration clauses

THE PROCEDURAL CONTRACT n Procedure governed by lex fori n Exclusive jurisdiction clauses allowed choice of different law n Hamlyn v. Talisker dicta n Jörg v. Jörg 1915 Swiss TF n Arbitration = procedure (Cantonal) n Substance = federal n US FAA opposite

MODERN SEPARABILITY n 1933 Swiss Tobler case n 1936 Norkoppings Sweden n 1950s Holland n 1963 Gosset – France n 1965 Strasbourg Uniform Law n 1967 Prima Paints US n 1970 Germany n 1976 Code judiciaire

THE ENGLISH SAGA n 1894 Hamlyn v. Talisker dicta - arbitration clause & contract can be governed by different laws n 1926 Hirji Mulji – frustration destroys arbitration clause n 1922Payne & Routh, 1927Joe Lee – one contract n 1942 Heyman v. Darwins – 3-2 split for one contract n 1953 Slade v. Metrodent – one contract saves clause in minor’s contract n 1980s Abandonment cases – separate contract n Black Clawson – three applicable laws

MODERN ENGLISH SEPARABILITY n Harbour n Premium Nafta (Fiona Trust) n Purist view – no interest in main contract n UK & Swedish v. French, Swiss & US n Presumption in favour of clause width n Bumbesti – not entitled to arrest ship to enforce award

JUSTIFICATIONS n Parties’ presumed intent n Presumption of survivability n Implied term designed to do parties good n Doesn’t do harm n Unitary contract idea – both private international law & validity

THANK YOU n Any questions n Adam Samuel n