Is arbitration prohibited for certain types of dispute (restraints of fundamental public policy)?
The Australian courts have taken a positive attitude towards the arbitrability of international disputes and consequently there are only few matters which are not arbitrable by operation of statute. For example, section 11 of the Carriage of Goods by Sea Act 1991 (Cth) declares void an arbitration agreement in a bill of lading or similar document relating to the international carriage of goods to or from Australia, unless the arbitration agreement provides that the place of arbitration is in Australia. In some states and territories arbitration clauses in insurance (and in New South Wales also reinsurance) contracts are not enforceable. The question of whether a dispute is arbitrable usually arises in the context of applications to stay court proceedings. Section 7(2)(b) of the IAA provides that the court must stay its proceedings if there is a valid arbitration agreement and the dispute involves the termination of a matter that, in pursuance of the arbitration agreement, is capable of
