Stay of judicial proceedings: optional arbitration clauses

In Anzen Ltd and Others v Hermes One Ltd (British Virgin Islands) [2016] UKPC 1, an appeal from the courts of the British Virgin Islands, the question was whether it was possible to obtain a stay of judicial proceedings where the parties had entered into a permissive arbitration agreement under which either party could refer the dispute to arbitration but no reference to arbitration had been made. The Judicial Committee of the Privy Council held that a stay should be granted. The judgment was given jointly by Lords Mance and Clarke, speaking also on behalf of Lords Sumption, Carnwath and Hodge.

Anzen : the facts