W. BRUCE, LTD. v. J. STRONG (KIRIL MISCHEFF, LTD., THIRD PARTIES; F. ABRAHAM & CO., FOURTH PARTIES; BAKIRZIS & CO. LTD., FIFTH PARTIES.)
[1951] 2 Lloyd's Rep. 5
COURT OF APPEAL.
Before Lord Justice Somervell, Lord Justice Singleton and Lord Justice Denning.
Arbitration - Stay of action - Scott v. Avery clause - Sale of goods - Chain contracts for bale of figs - Breach - Deficiency in weights - Action brought by ultimate buyer against his seller - Notices served by defendant seller upon third party, by third party upon fourth party, and by fourth party upon fifth party - Sale by fifth party to fourth party under conditions and rules of London Dried Fruit Trade Association - Rules providing that disputes should be referred to arbitration and that
the obtaining of an award . . . shall be a condition precedent to the right of either contracting party to sue the other or take any other legal proceedings in respect of any claim arising out of such contract.
Any demand for arbitration . . . shall be made in writing within two months . . . Should the demand not be so made, the same shall be considered to be waived and absolutely barred.
Writ issued by plaintiff after two months had expired - Application for stay brought by fifth party - Order of Master refusing stay upheld by Parker, J. - Further order of Master, made under Sect. 25 (4) of Arbitration Act, 1950, that the provision making an award a condition precedent to the hearing of the action should be treated as of no effect, upheld by Slade, J. - Appeal by fifth party - Arbitration Act, 1950, Sects. 4, 25 (4), 27.