Catagory:Europe

1
International Arbitration: A Tool to Manage Risk When Dealing in High Growth/High Risk Markets
2
Discretionary Right to Adjudicate No Basis for Stay of Arbitration
3
Partial Enforcement of Award Which Has Not Yet Become Final
4
Relevant Factors in Grant of Freezing Injunction in Support of Foreign Arbitration
5
Choice of Seat Dictates Procedural Law
6
Factors Justifying Disclosure of Documents Filed in Arbitration
7
K&L Gates’ Arbitration World, Spring 2008
8
Power of Court to Uphold Arbitral Award on Alternative Grounds
9
Court Intervenes Where Arbitrator Held Not to Have Power to Act Effectively
10
Considerations in Exercise of Court’s Power to Grant Anti-Suit Injunction

International Arbitration: A Tool to Manage Risk When Dealing in High Growth/High Risk Markets

By K&L Gates partner, Ian Meredith, and published in The Metropolitan Corporate Counsel.

As many businesses experience declining growth in their domestic and traditional markets, they are looking increasingly towards the "BRIC" countries (Brazil, Russia, India and China) and other high growth economies outside their traditional trading areas.  The report of the International Monetary Fund entitled the "World Economic Outlook" which was released on 9 April 9, 2008 downgraded projections for growth in 2008 and 2009 across the major Advanced Economies including those of the US, Canada and Western Europe whilst continuing to project relatively higher rates of growth across certain Emerging and Developing Economies including China and India.  It seems likely that the move by many US businesses to target Emerging and Developing Economies will gather pace.

This article will assess the extent to which international arbitration can play a role in assisting US businesses in managing commercial risk when seeking to invest and/or trade in higher risk overseas markets and it will provide a number of suggestions on ways to limit risk[1].

Read the full article here.

Discretionary Right to Adjudicate No Basis for Stay of Arbitration

Cubitt Bldg. & Interiors Ltd. v. Richardson Roofing (Ind.) Ltd., [2008] EWHC 1020 (Queen’s Bench Div., Tech. & Constr. Ct.)

Cubitt, the contractor on a construction project in London, engaged Richardson as sub-contractor.  Under the relevant sub-contract, both parties had a discretion to refer disputes to adjudication.  Richardson completed its works, Cubitt alleged delay and indicated that it intended to deduct liquidated damages from the amount payable to Richardson.  Richardson started arbitration proceedings against the Cubitt.  Cubitt sought a stay of the arbitration so that it could refer the dispute to adjudication. Read More

Partial Enforcement of Award Which Has Not Yet Become Final

IPCO (Nigeria) Ltd. v Nigerian Nat’l Petroleum Corp., 2008 WL 1771454, [2008] EWHC 797 (Queen’s Bench Div., Commercial Ct.)

IPCO contracted with NNPC to design and build a petroleum export terminal in Nigeria.  A dispute ensued and was arbitrated in Nigeria, subject to the supervision of the Nigerian courts.  IPCO obtained an award in October 2004 (in the sum of approximately US$152 million) and sought an order for its enforcement in England.  At the same time, NNPC brought an appeal against the award.  The English High Court granted an order to IPCO, but adjourned enforcement of the award pending the Nigerian appeal.  Subsequent developments in Nigeria had meant that any appeal against the award now lay some five or ten years in the future.  IPCO applied for a variation of the order adjourning enforcement of the award. Read More

Relevant Factors in Grant of Freezing Injunction in Support of Foreign Arbitration

Mobil Cerro Negro Ltd. v. Petroleos de Venezuela SA, 2008 WL 678144, [2008] EWHC 532 (Queen’s Bench Div., Commercial Ct.)

In this case, a freezing injunction was set aside, having been granted in support of claims which were the subject of ICC arbitration seated in New York.  The parties were parties to a contract for the exploitation of oil rights, the Claimant being a US corporate and the Defendant the Venezuelan state oil company.  Venezuelan legislation passed in 2007 mandated the “migration” of non-Venezuelan interests in Venezuelan oil to Venezuelan entities, and gave rise to claims under the parties’ contract.  Mobil obtained a worldwide freezing injunction up to a value of $12 billion and Petroleos applied to have the injunction set aside. Read More

Choice of Seat Dictates Procedural Law

Braes of Doune Wind Farm (Scotland) Ltd. v. Alfred McAlpine Bus. Servs. Ltd., 2008 WL 678195, [2008] EWHC 426 (Queen’s Bench Div., Tech. & Constr. Ct.)

In this case an agreement to arbitrate selected the Arbitration Act 1996 as the applicable procedural law but stated that the seat of any arbitration was "Glasgow, Scotland," where the Act does not apply.  It was held that, construing the contract as a whole, the arbitration was seated juridically in England, with Glasgow serving as the location of the arbitral hearing. Read More

Factors Justifying Disclosure of Documents Filed in Arbitration

John Forster Emmott v. Michael Wilson & Partners Ltd., 2008 WL 576947, [2008] EWCA Civ 184 (Ct. of App., Civil Div.)

In this case, the Court of Appeal upheld an order permitting the disclosure of documents filed in a London arbitration to the courts of certain overseas jurisdictions in related proceedings.  In the London arbitration Wilson had originally made claims of fraud against the claimant Emmott but had subsequently withdrawn them.  Wilson repeated those allegations in the overseas proceedings to which Emmott was not a party. Read More

K&L Gates’ Arbitration World, Spring 2008

By K&L Gates attorneys Peter R. Morton, Ian Meredith, John L. Boos, Joanna A. Diakos.

Arbitration World is an update for clients and contacts on recent development in international arbitration law and practice.

Welcome to the Fifth Edition of Arbitration World, a publication from K&L Gates’ Arbitration Group which aims to highlight significant developments and issues in international arbitration for executives and in-house counsel with responsibility for dispute resolution.

In this edition, in terms of U.S. developments, we look at the growth of “class arbitration” in the U.S. and Canada, review the case law on challenging the scope of submission to an arbitrator in the U.S. and take an early look at an important Supreme Court case regarding the scope for Federal Courts to review arbitral awards as well as the proposed “Arbitration Fairness Act.”

We consider two aspects of the continuing development of the ethical framework for arbitrators:  guidelines from the Chartered Institute of Arbitrators on the interviewing of prospective arbitrators and a U.S. Court of Appeal case on the duty to investigate potential conflicts of interest.

Read More

Power of Court to Uphold Arbitral Award on Alternative Grounds

CTI Group Inc. v. Transclear SA (The Mary Nour), 2007 WL 3001775, [2007] EWHC 2340 (Queen’s Bench Div., Commercial Court)

This case arose out of the non-delivery by the sellers of a quantity of cement.  The sellers had argued that the contract had been frustrated by the actions of the Mexican cement cartel.  The Tribunal held that the contract had been frustrated but, if they were wrong on that, the buyers had a valid claim for damages.  The buyers appealed to the English High Court on the main finding of frustration of contract.  The appeal succeeded, the High Court finding the wrong legal test for frustration had been applied.
Read More

Court Intervenes Where Arbitrator Held Not to Have Power to Act Effectively

Pacific Maritime (Asia) Ltd. v. Holystone Overseas Ltd., 2007 WL 2944844, [2007] EWHC 2319 (Queen’s Bench Div., Commercial Ct.)

Pacific sold an accommodation vessel to Holystone under an agreement which made special provision for the return of a block of accommodation or its equivalent to Pacific.  Under s.44 of the Arbitration Act 1996 (the “Act”), and in advance of commencement of arbitration, Pacific applied for and obtained a freezing order on the grounds of Holystone’s failure to provide a replacement accommodation block.  Arbitration then commenced and Holystone applied for the discharge of the freezing order partly on grounds that the arbitrator had jurisdiction to grant the relief Pacific wanted. Read More

Considerations in Exercise of Court’s Power to Grant Anti-Suit Injunction

(1) Starlight Shipping Co. (2) Overseas Marine Enters. Inc. v. (1) Tai Ping Ins. Co. (2) Int’l Econ. & Trading Corp., Wugang Group, 2007 WL 2186944, [2007] EWHC 1893 (Queen’s Bench Div., Commercial Ct.)

In this case, the owner (Starlight) and the manager of a ship (Overseas) applied for an injunction restraining proceedings brought by the respondent insurer (Tai Ping) in the Maritime Court of Wuhan in China.  Starlight had chartered its vessel subject to an arbitration agreement which was incorporated into a bill of lading to which a sub-charterer (Wugang) had then become a party.  The ship and cargo were lost en route from Brazil to China.  Tai Ping commenced proceedings for recovery of sums paid in indemnification of Wugang.  Starlight and Overseas disputed jurisdiction of the Chinese court on grounds of breach of the arbitration agreement, and sought an injunction in the English Commercial Court in restraint of those proceedings.  Tai Ping and Wugang argued that they were not bound by the arbitration agreement as a matter of Chinese law. Read More

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