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Contract (Third Party Rights) (Scotland) Act 2017

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9Arbitration

(1)In relation to a dispute to which subsection (2) or (3) applies, the person who has the third-party right mentioned in subsection (2) or (as the case may be) (3) is to be regarded as a party to the arbitration agreement mentioned in that subsection.

(2)This subsection applies to a dispute if—

(a)the dispute concerns an undertaking being enforced or otherwise invoked by virtue of a person’s third-party right to do so, and

(b)an arbitration agreement provides for a dispute on the matter under dispute to be resolved by arbitration.

(3)This subsection applies to a dispute if—

(a)subsection (2) does not apply to the dispute,

(b)an arbitration agreement provides for a dispute on the matter under dispute to be resolved by arbitration,

(c)a person has a third-party right to enforce or otherwise invoke an undertaking to resolve a dispute on the matter by arbitration under the agreement, and

(d)the person who has the third-party right has—

(i)submitted the dispute to arbitration, or

(ii)sought a sist of legal proceedings concerning the matter under dispute on the basis that an arbitration agreement provides for a dispute on the matter to be resolved by arbitration.

(4)For the purpose of subsection (3)(d)(i), the person who has the third-party right is to be regarded as having submitted the dispute to arbitration if the person has done whatever a party to the agreement would need to do in order to submit the dispute to arbitration.

(5)A person is not to be regarded as having renounced a third-party right to enforce or otherwise invoke an undertaking to resolve a dispute by arbitration by bringing legal proceedings in relation to the dispute.

(6)In this section—

  • “arbitration agreement” has the meaning given by section 4 of the Arbitration (Scotland) Act 2010, and

  • “dispute” is to be construed in accordance with section 2(1) of that Act.

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