South Australian Consolidated Acts

COMMERCIAL ARBITRATION AND INDUSTRIAL REFERRAL AGREEMENTS ACT 1986 - SECT 53

53—Relationship between judicial and arbitral powers

        (1)         If—

            (a)         a party to an arbitration agreement commences proceedings in a court against another party to the agreement in respect of a matter agreed to be referred to arbitration;

            (b)         an application for a stay of the proceedings is made by another party to the arbitration agreement;

            (c)         the application is made—

                  (i)         before the applicant has delivered pleadings or taken any other step in the proceedings other than the entry of an appearance; or

                  (ii)         with the permission of the court—at some later stage in the proceedings;

            (d)         the court is satisfied—

                  (i)         that there is no sufficient reason why the matter should not be referred to arbitration in accordance with the agreement; and

                  (ii)         that the applicant was at the commencement of the proceedings and still remains ready and willing to do all things necessary for the proper conduct of the arbitration,

the court may make an order staying the proceedings and may give such directions with respect to the future conduct of the arbitration as it thinks fit.

        (2)         If—

            (a)         a party to an arbitration agreement commences arbitration proceedings;

            (b)         an application for removal of the proceedings into the Court is made by another party to the arbitration agreement;

            (c)         the application is made—

                  (i)         before the arbitrator begins taking evidence in the proceedings; or

                  (ii)         with the permission of the Court—at some later stage in the proceedings;

            (d)         the Court is satisfied that there is a sufficient reason why the subject matter of the proceedings should be dealt with by the Court rather than by arbitration,

the Court may make orders terminating the arbitration proceedings and removing the matter into the Court.

        (3)         Notwithstanding any rule of law to the contrary, a party to an arbitration agreement shall not be entitled to recover damages in any court from another party to the agreement by reason that that other party takes proceedings in a court in respect of the matter agreed to be referred to arbitration by the arbitration agreement.