Jivraj v Hashwani

Last updated

Jivraj v Hashwani
Badge of the Supreme Court of the United Kingdom.svg
Court Supreme Court of the United Kingdom
DecidedJuly 27, 2011 (2011-07-27)
Citation(s) [2011] UKSC 40, [2011] WLR 1872
Case history
Prior action(s) [2010] EWCA Civ 712
Case opinions
Lord Clarke
Court membership
Judge(s) sitting Lord Phillips, Lord Walker, Lord Mance, Lord Clarke, Lord Dyson
Keywords
Discrimination, scope, genuine occupational requirement

Jivraj v Hashwani [2011] UKSC 40 is a United Kingdom labour law case concerning the scope of employment. Considering European labour law cases and the purpose of discrimination legislation, it held that it was legitimate to select a person of a particular religion to be an arbitrator, here an Ismaili.

Contents

Facts

Jivraj and Hashwani started a property investment joint venture in 1981, with a term that disputes should go to three arbitrators, one appointed by each, and all from the Ismaili community. In 1988 it was terminated, and some assets divided. In 2008, Hashwani’s solicitors wrote claiming more payment and requesting an arbitrator, but identifying a preferred non-Ismaili arbitrator. Jivraj said this was invalid, but Hashwani argued that the Ismaili requirement was contrary to EERBR 2003 r 6(1) and Directive 2000/78/EC art 3.

The Judge held EERBR 2003 did not apply to arbitrators, but even if it did, it would be a genuine occupational requirement under EERBR 2003 r 7. The Court of Appeal, Moore-Bick LJ for Aikens LJ and Buxton LJ, held an arbitrator appointment was a contract for provision of services, and ‘a contract personally to do any work’ which satisfied the definition of ‘employment in EERBR 2003 r 2(3), and that a party appointing an arbitrator was an ‘employer’ under r 6(1). Thus, restricting to Ismaili’s was contrary to r 6(1)(a)(c) and the exception in r 7 did not apply because being Ismaili was unnecessary for discharging an arbitrator’s functions. Because this would make the whole agreement substantially different the arbitration clause as a whole was void under EERBR 2003 Sch 4, para 1(1).

Laurence Rabinowitz QC, Christopher Style QC and Christopher McCrudden intervened for the London Court of International Arbitration. Thomas Linden QC, Toby Landau QC, Paul Key and David Craig intervened for the International Chamber of Commerce. Rabinder Singh QC and Aileen McColgan intervened with written submissions for the His Highness Prince Aga Khan Shia Imami Ismaili International Conciliation and Arbitration Board.

Judgment

Lord Clarke held that an arbitrator’s position could not fall under the EERBR 2003 (now the EA 2010 s 13) because it had to be construed in light of the aim of Directive 2000/78, and the jurisprudence of the ECJ. This drew a clear distinction, beyond the requirement of work for a wage in Lawrie-Blum, between those in a subordinate position, as in Allonby, and independent providers of services. An arbitrator was not subordinate, and not even a contract personally to do work. No part of the agreement was invalid. Percy v Board of National Mission of the Church of Scotland [2006] 2 AC 28, HL(Sc) and the opinion of AG Maduro from Centrum voor Gelijkheid van Kansen en voor Racismebestrijding v Firma Feryn NV (Case C-54/07) [2008] ICR 1390 was considered . If the regulations had been applicable, though, they would have fallen under r 7(3) as a genuine occupational requirement because an Ismaili requirement was indeed genuine and also justifiable.

Lord Phillips, Lord Walker and Lord Dyson concurred.

Lord Mance agreed that an arbitrator would fall outside the Regulations, but did not agree that the exception would be justified if the point arose. On the former consideration he quoted as follow from,

1904 (RGZ 59, 247), the German Reichsgericht identified the particular nature of an arbitral contract, in terms which I think have a relevance to arbitration generally, when it said (in translation):

“It does not seem permissible to treat the arbitrator as equivalent to a representative or an employee or an entrepreneur. His office has … an entirely special character, which distinguishes him from other persons handling the affairs of third parties. He has to decide a legal dispute in the same way as and instead of a judge, identifying the law by matching the relevant facts to the relevant legal provisions. The performance expected from him is the award, which constitutes the goal and outcome of his activity. It is true that the extent of his powers depends on the arbitration agreement, which can to a greater or lesser extent prescribe the way to that goal for him. But, apart from this restriction, his position is entirely free, freer than that of an ordinary judge.”

See also

Notes

    Related Research Articles

    Arbitration, in the context of the law of the United States, is a form of alternative dispute resolution. Specifically, arbitration is an alternative to litigation through which the parties to a dispute agree to submit their respective evidence and legal arguments to a neutral third party for resolution. In practice arbitration is generally used as a substitute for litigation, particularly when the judicial process is perceived as too slow, expensive or biased. In some contexts, an arbitrator may be described as an umpire.

    <span class="mw-page-title-main">United Kingdom labour law</span> Labour rights in the UK

    United Kingdom labour law regulates the relations between workers, employers and trade unions. People at work in the UK can rely upon a minimum set of employment rights, which are found in Acts of Parliament, Regulations, common law and equity. This includes the right to a minimum wage of £9.50 for over-23-year-olds from April 2022 under the National Minimum Wage Act 1998. The Working Time Regulations 1998 give the right to 28 days paid holidays, breaks from work, and attempt to limit long working hours. The Employment Rights Act 1996 gives the right to leave for child care, and the right to request flexible working patterns. The Pensions Act 2008 gives the right to be automatically enrolled in a basic occupational pension, whose funds must be protected according to the Pensions Act 1995.

    <span class="mw-page-title-main">Federal Arbitration Act</span> United States legal statute

    The United States Arbitration Act, more commonly referred to as the Federal Arbitration Act or FAA, is an act of Congress that provides for judicial facilitation of private dispute resolution through arbitration. It applies in both state courts and federal courts, as was held in Southland Corp. v. Keating. It applies in all contracts, excluding contracts of seamen, railroad employees, or any other class of workers involved in foreign or interstate commerce, and it is predicated on an exercise of the Commerce Clause powers granted to Congress in the U.S. Constitution.

    <span class="mw-page-title-main">Arbitration clause</span> Consumption of feces

    An arbitration clause is a clause in a contract that requires the parties to resolve their disputes through an arbitration process. Although such a clause may or may not specify that arbitration occur within a specific jurisdiction, it always binds the parties to a type of resolution outside the courts, and is therefore considered a kind of forum selection clause.

    <span class="mw-page-title-main">Arbitration</span> Consumption of feces

    Arbitration is a form of alternative dispute resolution (ADR) that resolves disputes outside the judiciary courts. The dispute will be decided by one or more persons, which renders the 'arbitration award'. An arbitration decision or award is legally binding on both sides and enforceable in the courts, unless all parties stipulate that the arbitration process and decision are non-binding.

    <i>George Mitchell (Chesterhall) Ltd v Finney Lock Seeds Ltd</i> 1983 British court case

    George Mitchell (Chesterhall) Ltd v Finney Lock Seeds Ltd is a case concerning the sale of goods and exclusion clauses. It was decided under the Unfair Contract Terms Act 1977 and the Sale of Goods Act 1979.

    United Kingdom agency worker law refers to the law which regulates people's work through employment agencies in the United Kingdom. Though statistics are disputed, there are currently between half a million and one and a half million agency workers in the UK, and probably over 17,000 agencies. As a result of judge made law and absence of statutory protection, agency workers have more flexible pay and working conditions than permanent staff covered under the Employment Rights Act 1996.

    The Employment Equality Regulations 2003 is a plank of United Kingdom labour law designed to combat discrimination in relation to people's religion or belief, or absence of religion or belief. They were introduced in order to comply with the European Union Directive 2000/78/EC and complement similar measures on sexuality, age, disability, race and gender discrimination. The EU Directive in turn is similar to legislation passed in the United States.

    European labour law regulates basic transnational standards of employment and partnership at work in the European Union and countries adhering to the European Convention on Human Rights. In setting regulatory floors to competition for job-creating investment within the Union, and in promoting a degree of employee consultation in the workplace, European labour law is viewed as a pillar of the "European social model". Despite wide variation in employment protection and related welfare provision between member states, a contrast is typically drawn with conditions in the United States.

    Southland Corp. v. Keating, 465 U.S. 1 (1984), is a United States Supreme Court decision concerning arbitration. It was originally brought by 7-Eleven franchisees in California state courts, alleging breach of contract by the chain's then parent corporation. Southland pointed to the arbitration clauses in their franchise agreements and said it required disputes to be resolved that way; the franchisees cited state franchising law voiding any clause in an agreement that required franchisees to waive their rights under that law. A 7-2 majority held that the Federal Arbitration Act (FAA) applied to contracts executed under state law.

    <span class="mw-page-title-main">Arbitration Act 1979</span> United Kingdom legislation

    The Arbitration Act 1979 (c.42) was an Act of the Parliament of the United Kingdom that reformed arbitration law in England and Wales. Prior to 1979, arbitration law was based on the Arbitration Act 1950, which allowed use of the "Case Stated" procedure and other methods of judicial intervention, which marked English arbitration law as significantly different from that of other jurisdictions. The prior law significantly increased the cost and time required for arbitration, which made England an unpopular jurisdiction to conduct such negotiations in. As a result, while London maintained its traditional position as a centre for arbitration in insurance, admiralty and commodities trading, it failed to attract more modern forms of trade. Following pressure from industry groups, the Lord Chancellor introduced the Arbitration Bill into Parliament, having it passed hours before the dissolution of James Callaghan's government. It was given the Royal Assent on 4 April 1979, and commenced working on 1 August 1979.

    <i>Chartbrook Ltd v Persimmon Homes Ltd</i>

    Chartbrook Ltd v Persimmon Homes Ltd[2009] UKHL 38 is an English contract law case concerning interpretation of contracts. It creates a so-called "red ink" rule, that there is no limit to verbal rearrangement that the court may deploy to give a commercial sensible meaning when construing a contract in its bargaining context. It also, importantly, reaffirmed the rule of English law, that pre-contractual negotiations were ordinarily inadmissible when construing a contract.

    An employment contract in English law is a specific kind of contract whereby one person performs work under the direction of another. The two main features of a contract is that work is exchanged for a wage, and that one party stands in a relationship of relative dependence, or inequality of bargaining power. On this basis, statute, and to some extent the common law, requires that compulsory rights are enforceable against the employer.

    <i>Autoclenz Ltd v Belcher</i>

    Autoclenz Ltd v Belcher [2011] UKSC 41 is a landmark UK labour law and English contract law case decided by the Supreme Court of the United Kingdom, concerning the scope of statutory protection of rights for working individuals. It confirmed the view, also taken by the Court of Appeal, that the relative bargaining power of the parties must be taken into account when deciding whether a person counts as an employee, to get employment rights. As Lord Clarke said,

    the relative bargaining power of the parties must be taken into account in deciding whether the terms of any written agreement in truth represent what was agreed and the true agreement will often have to be gleaned from all the circumstances of the case, of which the written agreement is only a part. This may be described as a purposive approach to the problem.

    <i>Canadian Union of Public Employees v Ontario (Minister of Labour)</i> Supreme Court of Canada case

    Canadian Union of Public Employees v Ontario (Minister of Labour), 2003 SCC 29, is a leading Supreme Court of Canada decision on arbitration and bias in administrative law. The court held that it was patently unreasonable for the Minister of Labour to appoint retired judges as arbitrators in labour disputes without considering their expertise in labour relations under the Hospital Labour Disputes Arbitrations Act.

    Sir Martin James Moore-Bick is a retired judge of the Court of Appeal of England and Wales.

    Disputes between consumers and businesses that are arbitrated are resolved by an independent neutral arbitrator rather than in court. Although parties can agree to arbitrate a particular dispute after it arises or may agree that the award is non-binding, most consumer arbitrations occur pursuant to a pre-dispute arbitration clause where the arbitrator's award is binding.

    <i>Cavendish Square Holding BV v Talal El Makdessi</i>

    Cavendish Square Holding BV v Talal El Makdessi[2015] UKSC 67, together with its companion case ParkingEye Ltd v Beavis, are English contract law cases concerning the validity of penalty clauses and the application of the Unfair Terms in Consumer Contracts Directive. The UK Supreme Court ruled on both cases together on 4 November 2015, updating the established legal rule on penalty clauses and replacing the test of whether or not a disputed clause is "a genuine pre-estimate of loss" with a test asking whether it imposed a proportionate detriment in relation to any "legitimate interest" of the innocent party.

    <i>Uber BV v Aslam</i> British labour law case

    Uber BV v Aslam [2021] UKSC 5 is a landmark case in UK labour law and company law on employment rights. The UK Supreme Court held the transport corporation, Uber, must pay its drivers the national living wage, and at least 28 days paid holidays, from the time that drivers log onto the Uber app, and are willing and able to work. The Supreme Court decision was unanimous, and upheld the Court of Appeal, Employment Appeal Tribunal, and Employment Tribunal. The Supreme Court, and all courts below, left open whether the drivers are also employees but indicated that the criteria for employment status was fulfilled, given Uber's control over drivers.

    <i>Rock Advertising Ltd v MWB Business Exchange Centres Ltd</i>

    Rock Advertising Ltd v MWB Business Exchange Centres Ltd[2018] UKSC 24 is a judicial decision of the Supreme Court of the United Kingdom relating to contract law, concerning consideration and estoppel. Specifically it concerned the effectiveness of "no oral variation" clauses, which provide that any amendments or waiver in relation to the contract must be in writing.

    References