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London Sack & Bag

[1943] 2 All ER 763

Case summary last updated at 20/01/2020 20:09 by the Oxbridge Notes in-house law team.

Judgement for the case London Sack & Bag

C and D were both members of a trade association company. Articles of association stated that ‘trade disputes’ should be submitted to arbitration. Dispute between two members arose as to a transaction between them; one of pair refused to submit to arbitration and sued. D sought to have court case stayed. Held:
·       No rights of action can arise under articles in relation to matters which arise outside the ‘company relationship’
·       Matter under dispute was a commercial trading transaction
Ø  Thus transaction had nothing to do with C and D’s membership of company.
·       Thus article could not be enforced against C.

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