Sumiko Blue Point Ltd VDH

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Brand: Sumiko

Sumiko Blue Point Ltd v DH is a legal case decided by the UK Supreme Court in 2016. The case involved a dispute over the scope of an arbitration clause in a distribution agreement between Sumiko Blue Point, a Japanese company, and DH, a UK distributor. The agreement contained a provision stating that any dispute arising out of or in connection with the agreement would be resolved through arbitration in Tokyo under Japanese law.The main issue in the case was whether the arbitration clause applied to a claim brought by DH for damages arising out of breach of an implied term in English law regarding the supply of goods in accordance with the current quality standards. The lower courts had held that the clause did not apply as the claim was based on English law and the surviving action was not an action for a breach of contractual obligation.However, the Supreme Court held that the arbitration clause should be interpreted broadly, so as to cover all disputes between the parties relating to the distribution agreement, regardless of the law governing the dispute or the nature of the specific claim. The court found that the clause did apply to the claim made by DH and that the arbitration provisions should be complied with, including the requirement that disputes be resolved in Tokyo under Japanese law.The judgment clarified the principle that the intention of the parties as expressed in the arbitration clause should be given effect, rather than being defeated by a technical or formalistic approach to the interpretation of the clause. The decision reinforces the importance of carefully crafting arbitration clauses to ensure they encompass all possible disputes that may arise between the parties.