Matthew Arnold & Baldwin LLP

Paul Gershlick

C contractually agreed to provide D with software and IT services. The dispute resolution clause in the contract provided for mediation and adjudication. A dispute arose. C suggested mediation, to which D agreed. D also gave notice of material default and required C to correct. C gave notice requiring adjudication. D gave notice of termination when the material default had not been corrected. Each party objected to the action taken by the other party. C sought an injunction to prevent D terminating until the adjudication process had been completed; meanwhile, D sought an injunction to prevent C going to adjudication while mediation was still in play.    

The High Court refused both injunction requests. Unless there was very clear wording in the contract to the contrary: the dispute resolution process did not stop a party exercising its contractual rights including the right to terminate; and different dispute resolution mechanisms provided for in the contract were not mutually exclusive.