Intra Africa Assurance Company Limited v Parklands Service Station (K) Limited
The bottom line
#Kenya's Court of Appeal confirmed that courts must stay lawsuits over insurance disputes covered by an arbitration clause, unless the party seeking arbitration actually refused to arbitrate.
What this practically means
#Executive summary
#Key legal issues
#Whether the third party satisfied the requirements of section 6 of the Arbitration Act for a stay of proceedings
The High Court judge erred in declining the stay: the dispute was one that ordinarily should have been referred to arbitration, there had been no earlier request to the appellant to arbitrate, and no evidence that the appellant refused to arbitrate. The appeal was allowed and the claim against the appellant stayed.
The application was brought under section 6 of the Arbitration Act, Cap 49, and asserted that the dispute must be referred to arbitration under condition 13 of the insurance policy. The judge below found as fact that the dispute was arbitrable and that no prior request to arbitrate had been made or refused. The appellant's first opportunity to raise arbitration was in the suit itself. Given those findings, the Court of Appeal could see no basis for refusing the stay and reversed the ruling.
Legal principles established
#- A party seeking a stay of proceedings under section 6 of the Arbitration Act must demonstrate that it was ready and willing to submit to arbitration; where the dispute is one that ordinarily should have been referred to arbitration and there is no evidence that the party declined to arbitrate, a stay should be granted.
Court orders
#- 1.Appeal allowed
- 2.The claim against the appellant stayed
- 3.Costs of the appeal and of the stay application awarded to the appellant
- On appeal from
- High Court of Kenya at Nairobi
- Civil Case No. 68 of 1992
- Jurisdiction invoked
- First appeal against an interlocutory order of the High Court (stay of proceedings under section 6 of the Arbitration Act, Cap 49)
Key timeline
#Practical implications
#Frequently asked questions
#Cite this brief
#Cite this brief
Caselaw, "Intra Africa Assurance Company Limited v Parklands Service Station (K) Limited", Case Analysis (1997). Civil Appeal 67 of 1996. Source:
Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.