Arbitration tribunals generally accept the doctrine of separation without reference to national law, but as a general principle of international arbitration. (b) The arbitration shall be conducted in English. The place of arbitration shall be Zurich, Switzerland. Section 7 of the English Arbitration Act 1996 provides that, unless otherwise agreed, the arbitration clause is not considered invalid because the underlying contract has become inoperative. An arbitration clause survived the termination of the underlying agreement, although the clause is not explicitly mentioned in the agreement`s survival clause, the U.S. Court of Appeals ruled for the Sixth Circle of Cincinnati in a first-impression case among federal courts. Huffman et al. v. Hilltop Cos., LLC, No. 13-3938 (6th cir. 27 March 2014).
Referring to the strong federal policy that favours arbitration, the court concluded that the omission of the arbitration clause by the parties to the survival clause did not mean that the arbitration clause had no effect after termination. The court overturned the District Court`s dismissal of the arbitration. The Sixth Circuit is responsible for Kentucky, Michigan, Ohio and Tennessee. For example, at Nolde Bros, Inc. Bakery Workers, the U.S. Supreme Court ruled that the arbitration agreement applies to cases where facts are before and after expiration, as long as the dispute in question is related to a right in the terminated contract.  Many national laws have recognized that the invalidity, non-existence, illegality or termination of the substantive contract does not affect the validity, legality or existence of the arbitration agreement. That would be offensive to justice. The situation can only change if, in their contract, the parties expressly provide that a dispute over fraud, misrepresentation or concealment in negotiations is submitted to arbitration.
This requires very clear language. . . .Back to Blog