Tickets, Money, Passport -- and an Arbitration Agreement? Pro-Arbitration Policy in Dampskibsselskabet Norden A/S v. Gladstone Civil Pty Ltd

Abstract

This is a case note of the recent Australian decision of Dampskibsselskabet Norden A/S v. Gladstone Civil Pty Ltd ('Norden'). This note analyzes the way in which the Court adopted a pro-arbitration policy for international commercial transactions in resolving the key issue in the case. This pro-arbitration policy, as it applies to international commercial transactions, is assessed in the context of its application by other courts in Australia and throughout the world in resolving issues which touch upon the effectiveness and enforceability of arbitration. The note argues that the pro-arbitration policy applied in Norden is part of a broader trend of courts seeing arbitration as a means of facilitating and encouraging international business. This has both international and national aspects: the former being that arbitration is essential for promoting international commerce, the latter being that promoting the effectiveness and enforceability of arbitration creates domestic economic benefits. Finding that applying the policy is consistent with the New York Convention, UNCTTRAL Model Law or general approaches to judicial decision-making, the note concludes with assessing how the policy could have been better applied to the facts of Norden to uphold the parties' choice to arbitrate in the face of legislation purporting to override that choice .