In August 2025, the High Court granted an insurer’s application, in terms of section 3(2) of the Arbitration Act, for an order that ancillary disputes with a party insured by it not be referred to arbitration in terms of an arbitration clause in an insurance policy and that the disputes be heard in the High
It is unusual for an insurer to force its insured to arbitrate an insurance dispute but in this recent judgment the insurer successfully obtained an order compelling the insured to arbitrate their loss dispute rather than to litigate in the High Court.
The insurers relied on a common policy term regarding arbitration when liability under
During arbitration between a franchisor and franchisee, an interim interdict may be employed to enable the parties to continue to conduct their business arrangements until the dispute is settled. However, in certain circumstances the operation of the interdict may be suspended pending an appeal.
The January 2024 high court judgment in Cash Crusaders Franchising (Pty)
The Supreme Court of Appeal (SCA) upheld an arbitration award that was challenged by the buyers of shares in a company, who argued that the arbitrator had ignored their suggestion to hold a separate hearing on one of the claims. The SCA found that the suggestion was not binding on the arbitrator, and that he
The Supreme Court of Appeal has reaffirmed some important principles about arbitrations. An arbitrator ‘has the right to be wrong’ on the merits of the case and being wrong does not mean that the arbitrator misconceived the nature of the enquiry. Secondly, an arbitrator only has the powers afforded to them in terms of the
An arbitration or similar adjudication clause, contained in an agreement that is found to have been induced by fraud, does not survive the avoidance of the agreement. That would be offensive to justice. The position can only change if the parties specifically make provision in their contract for a dispute regarding fraud, misrepresentation or concealment
An arbitrator’s notes do not form part of the record of arbitration proceedings, and the losing party, intent on a review, cannot compel the disclosure of the notes.
In Zamani Marketing and Management Consultants v HCI Invest 15 Holdco, the claimant instituted proceedings in terms of the Arbitration Act 1965 to review and set
The case of Khum MK Investments and Bie Joint Venture (Pty) Limited v Eskom Holdings Soc illustrates our courts’ reluctance to interfere with arbitration awards except in the limited circumstances set out in the Arbitration Act. The applicant must not only allege that the arbitrator’s decision was legally wrong. It must show that no reasonable
Section 8 of the Arbitration Act 1965 allows a court to extend the period allowed for arbitration in terms of an arbitration agreement if ‘undue hardship would otherwise be caused’. The Johannesburg High Court held that it would cause ‘undue hardship’ to refuse to extend a time-bar in circumstances where the events that caused the
The English commercial court set out the limited basis on which an arbitration award can be set aside when it is alleged that evidence of fraud that would have affected the decision only came to light after the award. The merits of an arbitration award are rarely reviewed. Public policy exceptions such as fraud can