English courts – International Arbitration

November 14, 2024November 14, 2024 by Mark Handley

English court rejects arbitral appeal as out of time and refuses to grant 5 day extension

The decision in Friedhelm Eronat v CNPC International (Chad) Limited [2024] EWHC 2880 (Comm) underlines, with some emphasis, the strictness of the deadlines applied in relation to appeals brought under the Arbitration Act.

In this case the parties had contractually varied the period for making an appeal. They agreed on 30 days, overrising the 28 days in section 70(3) of the Arbitration Act.

The contractual 30-day period (as with the Act’s 28 day period) ran from the date the award was “made”, and not from when the parties received a copy of the award.

In this case the Award was made on 11 April, and was received on 16 April. The appellant to the English court filed its appeal on 16 May, which would have been 30 days from notification of the award, but outside that period when counting from the date of the award itself

The court granted an application to summarily dismiss the appeal as being time barred. The court also refused an application for a retrospective extension, holding that it was an “archetypal” case where no such extension should be given. This was in part because the party had not put in evidence explaining the delay, or why it was appropriate to grant the extension.

May 10, 2024 by Mark Handley

UK Supreme Court clarifies scope of an appeal under the Arbitration Act

The UK Supreme Court’s decision in Sharp Corp Ltd v Viterra BV [2024] UKSC 14, has clarified the scope of, and limitations to, an appeal of law under section 69 of the English Arbitration Act 1996.

In the earlier Court of Appeal decision the Court had made findings of fact additional to those made by the original Tribunal. These related to a finding that one of the contracts in question had been varied. Further, the Court of Appeal had decided a question of law which had not been put to the Tribunal.

On the second point, the Supreme Court swiftly concluded that a valid appeal requires that “the point has to [have been] fairly and squarely before the arbitration tribunal for determination“. If the issue had not been before the Tribunal in this way the proceedings cannot properly be an “appeal” on that point.

On the question of whether a court hearing an appeal has the authority to make findings of fact, this point was also dealt with quickly by the Supreme Court at [71]:

“The court’s jurisdiction under section 69 of the Act is limited to appeals on questions of law. It has no jurisdiction in relation to errors of fact and no power to make its own findings of fact“.

The decision is a clear statement of the limits of an appeal under section 69 of the Arbitration Act and serves as helpful guidance.

April 11, 2024 by Mark Handley

When does a contract waive a state’s immunity from enforcement?

The decision in General Dynamics (UK) Ltd v State of Libya [2024] EWHC 472 (Comm), turned on whether the sentence “Both parties agree that the decision of the arbitration panel shall be final, binding and wholly enforceable.”, did or did not operate to waive the State of Libya’s immunity from enforcement in accordance with the UK’s State Immunity Act 1978.

The contract was governed by Swiss Law, but the principles of contractual construction under Swiss law were not in dispute. Also not disputed was the fact that no particular form of words are required for a state to waive a part of its immunity.

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March 5, 2024March 5, 2024 by Mark Handley

English court stays litigation in favour of arbitration

Seven companies have a claim against their former director for breach of fiduciary duties. Three of those companies have an arbitration agreement.

All seven companies bring a claim in the English court against the former director who applies to have the court proceedings stayed in favour of arbitration.

The three claimants with an arbitration agreement concede that they must sue in arbitration, and the question then becomes whether the court claims by the other claimants should be stayed in favour of the arbitration or not.

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February 20, 2024 by Mark Handley

English court decision on anti-arbitration injunctions

The High Court in London has granted an anti-arbitration injunction to prevent the commencement of an arbitration within the context of a series of long-running disputes between the parties.

The case is Sodzawiczny v Smith (Re Arbitration Claim) [2024] EWHC 231 (Comm). The decision contains a useful and detailed review of the case law regarding anti-arbitration injunctions.

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