Alfred McAlpine Construction Ltd v Unex Corporation Ltd 70 BLR 26; 38 Con LR 63 (Court of Appeal)
Citation: 70 BLR 26; 38 Con LR 63 (Court of Appeal)
Nature of case:
McAlpine was engaged as contractor by the employer, Panatown, to construct an office block and multi-storey car park in Cambridge. The defendant, Unex, provided a Parent Company Guarantee in favour of McAlpine.
McAlpine and Panatown became involved in substantial disputes which were referred to arbitration. McAlpine sought to enforce the Parent Company Guarantee by commencing proceedings in the courts. Unex applied to stay these proceedings pending the conclusion of the arbitration process. The application was unsuccessful and Unex appealed.
The Court of Appeal held that the position as between McAlpine and Unex was not co-extensive with the position as between McAlpine and Panatown. Separate issues were raised by the litigation on the Parent Company Guarantee and these proceedings would not be stayed. The appeal was dismissed.
