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- Title
ARBITRATION CLAUSE AUTHORIZING ARBITRATORS TO DECIDE DISPUTES INVOLVING INTERPRETATION OR EFFECT OF CONTRACT IS NOT SUFFICIENTLY BROAD TO DECIDE ISSUES OF ILLEGALITY OF CONTRACT ITSELF. SUCH DISPUTE IS TO BE DECIDED BY COURT IN PROCEEDINGS TO COMPEL ARBITRATION
- Abstract
This article focuses on the court ruling given in American President Lines Ltd. v. S. Woolman Inc. case. Arbitration clause authorizing arbitrators to decide disputes involving interpretation or effect of contract is not sufficiently broad to decide issues of illegality of contract itself. Such dispute is to decided by court in proceedings to compel arbitration, since, as the court said, the claim of illegality of the contract "could hardly be said to arise out of the contract or to involve its interpretation." The contract in this case was a dual rate contract between a textile shipper and a conference of shipping companies, never filed with the Federal Maritime Board as required by Sec. 15 of the Shipping Act at the time of its making.
- Subjects
LEGAL judgments; AMERICAN President Lines Ltd.; ACTIONS &; defenses (Law); ARBITRATION &; award; CONTRACTS; SHIPPING companies
- Publication
Arbitration Journal, 1965, Vol 20, Issue 2, p128
- ISSN
0003-7893
- Publication type
Article