Associate Judge Osborne also ordered security for costs of $12,800 (representing 80 percent of a 2B award) after balancing the respective interests of the parties, on the grounds that there were no considerations strongly weighing against requiring the Plaintiffs to provide security and there was a high degree of likelihood that the Plaintiffs will be without funds at the end of the litigation if it proves to be unsuccessful. He also dismissed the Defendants’ application to strike out a number of the Plaintiffs’ claims. Comment Associate Judge Osborne’s decision confirms the operation of clause 8(1), Schedule 1 of the Act, namely that arbitration agreements are independent of the other terms of a contract and will survive termination of the primary contract unless it can be established that the arbitration agreement has been rendered inoperative, with the upshot being that parties who include provision for arbitration in their agreements will likely be bound by such a clause following termination or cancellation of the main agreement.
References [8] Savvy Vineyards 4334 Limited v Weta Estate Limited [2017] NZHC 1111 at [2]. [9] Savvy Vineyards 4334 Limited v Weta Estate Limited [2017] NZHC 1111 at [4]. [10] Savvy Vineyards 4334 Limited v Weta Estate Limited [2017] NZHC 1111 at [16]. [11] Savvy Vineyards 4334 Limited v Weta Estate Limited [2017] NZHC 1111 at [26]-[27]. [12] Savvy Vineyards 4334 Limited v Weta Estate Limited [2017] NZHC 1111 at [39]. [13] Savvy Vineyards 4334 Limited v Weta Estate Limited [2017] NZHC 1111 at [39]. [14] Savvy Vineyards 4334 Limited v Weta Estate Limited [2017] NZHC 1111 at [39]. [15] Ursem v Chung [2014] NZHC 436, [2014] NZAR 1123, especially at [47]. See also, Tamihere v Media Works Radio Ltd [2014] NZHC 2082, [2014] NZAR 1113 at [20]; Donaldson v Donaldson [2015] NZHC 3093, [2016] NZAR 199 at [19]. [16] Tamihere v Media Works Radio Ltd [2014] NZHC 2082.
Sarah Redding
Sarah graduated from the University of Otago with a Bachelor of Laws. She then worked as a graduate law clerk at the New Zealand Dispute Resolution Centre, and now is a solicitor at Kensington Swan.