HEYMAN AND ANOTHER v. DARWINS, LTD.

(1942) 72 Ll.L.Rep. 65

HOUSE OF LORDS.

Before Viscount Simon (Lord Chancellor), Lord Russell of Killowen, Lord Macmillan, Lord Wright and Lord Porter.

Arbitration - Stay of action - Agency contract between plaintiffs and defendants whereby plaintiffs were appointed sole selling agents for defendants' products over wide range of territories- Notification made by defendants that they proposed to retain certain commissions due to plaintiffs on ground that plaintiffs were acting contrary to contract terms - Anticipatory breach by defendants - Writ issued by plaintiffs claiming damages for breach and for commissions due- Summons taken out by defendants to stay proceedings under Sect. 4 of Arbitration Act, 1889, it being provided by the contract that "If any dispute shall arise between the parties hereto in respect of this agreement or any of the provisions herein contained or anything arising hereout the same shall be referred for arbitration in accordance with the provisions of the Arbitration Act, 1889, or any then subsisting statutory modification thereof" - Order of C.A. (reversing Cassels, J., and Master Simner) granting stay- Appeal by plaintiffs- Right of defendants to rely upon arbitration clause- Consideration of circumstances in which arbitration clause may be applied- Scope of clause - Discretion of Court - Effect of repudiation - Frustration - Approbation and reprobation.