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49 court cases on arbitration agreement invalidness - choosing both litigation and arbitration (9)

June 21, 2023

Full title: 49 existing court cases on invalidness of arbitration agreement - If the parties agree that a dispute can be either litigated or arbitrated, the arbitration agreement shall be invalid (9)

Case 35. If the parties agree that in the event of a dispute, they may apply for arbitration to an arbitration institution or file a lawsuit with a people's court, the arbitration agreement shall be invalid.

Name of the case: Jizhong Energy Handan Mining Group Co., Ltd. and Wu'an Falin Materials and Trade Co., Ltd. applied to confirm the validity of the arbitration agreement

Case No.: (2020) Ji 04 Min Te No. 18

Reason for adjudication: Article 18 of the Material Storage Agreement on which the respondent Wu'an Falin Material Trade Co., Ltd. applied for arbitration agreed: "Dispute settlement of this agreement: disputes arising from the performance of this agreement shall be settled by both parties through consultation, or mediated by the local industrial and commercial administrative department. If negotiation or mediation fails, it shall be settled in the following ways: (1) Submit to Handan Arbitration Commission for arbitration; (2) Bring a lawsuit to the people's court in the place where the buyer is located in accordance with the law According to Article 7 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of the Arbitration Law of the China, "If the parties agree that a dispute can be submitted to an arbitration institution for arbitration or to a people's court for litigation, the arbitration agreement is invalid...". Therefore, the arbitration clause involved in this case should be invalid.