In Mylcrist Builders Limited v Mrs G Buck [2008] EWCH 2172 TCC the claimant builders (C) applied for an order to enforce an arbitration award against the defendant (D), a consumer, who had engaged C on C's standard terms and conditions.
Those terms and conditions included an arbitration clause. Ramsey J refused the application on the basis that the arbitrator had not been properly appointed and also on the grounds that the arbitration clause was not binding on D.
Under the Unfair Terms in Consumer Contracts Regulations 1999, the inclusion of the arbitration clause was unfair on D. It caused a significant imbalance in the parties' rights and obligations under the contract, to the detriment of D.
The case serves as a warning to businesses of the risks of including an arbitration clause in their standard terms and conditions when dealing with consumers, unless the clause and its effect have been fully explained in advance.
