London Sack & Bag [1943] 2 All ER 763
Country:
United Kingdom
Reviewed By Oxbridge Law Team
Updated 2024-01-04 07:05:15 UTC
Claimant and Defendant were both members of a trade association company. Articles of association stated that ‘trade disputes’ should be submitted to arbitration.
Dispute between two members arose as to a transaction between them; one of pair refused to submit to arbitration and sued.
Defendant sought to have court case stayed.
Held
No rights of action can arise under articles in relation to matters which arise outside the ‘company relationship’
-
Matter under dispute was a commercial trading transaction
Thus transaction had nothing to do with Claimant and Defendant’s membership of company.
Thus article could not be enforced against Claimant.
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