Joseph Iosefa v Polar Air Cargo Worldwide, Inc; Polar Air Cargo Worldwide, Inc v Dnata Airport Services Pty Ltd

[2025] NSWSC 1500

Supreme Court of NSW

Built by Barristers,
For Australian Law.

A multi-tiered dispute resolution clause providing that parties 'may elect' to resolve disputes through arbitration, and that if parties 'fail to agree to an arbitration process' the dispute shall be settled by litigation, is permissive of arbitration by mutual agreement rather than constituting a binding arbitration agreement within the meaning of s 7 of the International Arbitration Act 1974 (Cth).
Where the word 'dispute' is used consistently throughout a dispute resolution clause without qualification, it bears the same meaning in each sentence — referring to the underlying substantive dispute — and should not be given a narrower meaning (such as a dispute about arbitral procedure) in one sentence absent clear textual support.
The context of a services agreement contemplating claims by the service provider's employees against the other contracting party is relevant to construing a dispute resolution clause, as it supports a construction that avoids requiring a party to deal with related disputes in two forums simultaneously.