The County Court Rules 1981

PART IREFERENCE TO ARBITRATION

Interpretation of Part I

1.  In this Part of this Order, unless the context otherwise requires, “reference” means the reference of proceedings to arbitration under section 92 of the Act, “order” means an order referring proceedings to arbitration under that section and “outside arbitrator” means an arbitrator other than the judge or registrar.

Mode of reference

2.—(1) Except as provided by paragraph (3), a reference shall be made only on the application of a party to the proceedings sought to be referred.

(2) Unless the court otherwise directs, an application by a party to any proceedings for a reference may be made—

(a)in the case of a plaintiff, by notice incorporated in his particulars of claim or request for the issue of a summons;

(b)in the case of a defendant, by notice incorporated in any defence or counterclaim of his;

(c)in any case, on notice under Order 13, rule 1.

(3) Any proceedings in which the sum claimed or amount involved does not exceed £500 shall stand referred for arbitration by the registrar upon the receipt by the court of a defence to the claim, but the registrar may, on the application of any party, refer the proceedings for arbitration by the judge or by an outside arbitrator.

(4) Where any proceedings are referred for arbitration by the registrar under paragraph (3), he may, on the application of any party, rescind the reference if he is satisfied—

(a)that a difficult question of law or a question of fact of exceptional complexity is involved; or

(b)that a charge of fraud is in issue; or

(c)that the parties are agreed that the dispute should be tried in court; or

(d)that it would be unreasonable for the claim to proceed to arbitration having regard to its subject matter, the circumstances of the parties or the interests of any other person likely to be affected by the award.

(5) Where an application for a reference is made under paragraph (1) and the proceedings are not referred to arbitration under paragraph (3), the following provisions shall apply:—

(a)Subject to sub-paragraphs (b) to (d), an order may be made by the registrar.

(b)Any party to the proceedings may, at any time before the application is heard, request the registrar in writing to refer the application to the judge and thereupon the proper officer shall fix a day for the hearing of the application by the judge and give notice thereof to the parties.

(c)An order shall not be made referring proceedings to the judge except by or with the leave of the judge.

(d)An order shall not be made referring proceedings to an outside arbitrator except with the consent of the parties.

(e)If the court is satisfied that a charge of fraud against a party is in issue in the proceedings, an order shall not be made except with the consent of that party.

Reference of other matters in dispute

3.  If it appears to the court at any time after a reference has been made, whether by order or otherwise, that there are any other matters within the jurisdiction of the court in dispute between the parties, the court may order them also to be referred to arbitration.

Service of order for reference to outside arbitrator

4.  Where proceedings are referred to an outside arbitrator, the order or request shall be served on the arbitrator as well as on the parties, but it shall not, unless the court directs, be served on anyone until each party has paid into court such sum as the registrar may determine in respect of the arbitrator's remuneration.

Conduct of reference

5.—(1) Subject to any directions of the court as to the conduct of the reference, rule 9(a) to (e) shall apply, with the necessary modifications, in relation to a reference or order as they apply in relation to an order under section 93 of the Act.

(2) Any proceedings referred to arbitration under rule 2 shall be referred on the terms set out below unless the court otherwise directs:—

Terms of reference

Restriction on allowance of costs

6.  No solicitors' charges shall be allowed as between party and party in respect of any proceedings referred to arbitration under rule 2(3), except—

(a)the costs which were stated on the summons or which would have been stated on the summons if the claim had been for a liquidated sum;

(b)the costs of enforcing the award, and

(c)such costs as are certified by the arbitrator to have been incurred through the unreasonable conduct of the opposite party in relation to the proceedings or the claim therein.