The Supreme Court has confirmed in Ust-Kamenogorsk Hydropower Plant JSC (JSC) v AES Ust-Kamenogorsk Hydropower Plant LLP [2013] UKSC 35 that English courts may order an injunction to stay foreign proceedings which have been started in breach of an arbitration agreement, even where no arbitration proceedings are proposed or underway.
Arbitration
UK: English High Court Rules on Separability of Arbitration Agreements
In the conjoined cases of Beijing Jianlong Heavy Industry Group v Golden Ocean Group and Beijing Jianlong Heavy Industry Group v Ship Finance International Ltd [2013] EWHC 1063, Judge Mackie QC held that arbitration clauses which were included in certain guarantee contracts were enforceable, even if the guarantees themselves might be unenforceable. …
The Supreme Court Rules that Courts Must Honor an Arbitrator’s Construction of Contractual Language in Favor of Class Arbitration, “However Good, Bad, or Ugly”
n Oxford Health Plans LLC v. Sutter, 569 U.S. ____ (2013), the Supreme Court all but ordered the federal courts to not decide whether one person can pursue arbitration on behalf of a class of other people. Dr. John Sutter had a contract with Oxford Health Plans to provide his services to people Oxford insured. In exchange, Oxford would pay him. …
UK: Warranty to Insure Creates an Assumption of Risk and Responsibility
In Bunga S.A. v. Kyla Shipping Company Limited [2012] EWHC 3522 (Comm), the Commercial Court considered whether an arbitrator had made an error of law under Section 69 of the Arbitration Act 1996. The court concluded that a continuing warranty to maintain hull insurance created an assumption of risk and responsibility, defeating the contention that a charterparty had been frustrated. …
Binding Arbitration Clauses in Insurance Policies Found Unenforceable in Washington
In State of Wash. Dep’t of Transp. v. James River Ins. Co., No. 87644-4 (Wash. Jan. 17, 2013), the Washington Supreme Court recently determined that a state statute prohibits binding arbitration clauses in insurance policies. The decision arose out of an insurance coverage dispute between James River Insurance and one of its insureds, the Washington State Department of Transportation (the “Department”). …
First Circuit: Arbitration Decision Bars Insured From Litigating Coverage Issues
In a recent decision, the U.S. Court of Appeals for the First Circuit held that the doctrine of issue preclusion barred an insured from litigating the applicability of an insurance policy exclusion where an arbitration panel had previously addressed a related, but not identical, question of law. The case is Manganella v. Evanston Insurance Company, No. 12-1137. A copy of the decision is available here. …
UK: Court Proceedings Stayed in Turville v Chartis
In Turville Heath Inc v Chartis Insurance UK Limited [2012] EWHC 3019 (TCC), Mr Justice Edwards-Stuart in the High Court refused the defendant’s application for a stay of proceedings under s. 9 of the Arbitration Act 1996 (Arbitration Act) but granted a stay using the court’s inherent jurisdiction under s. 49 of the Senior Courts Act 1981 (SCA). …
UK: Court of Appeal Rules on Scope of Appeals Under S18 of the Arbitration Act
In Itochu Corporation v Johann MK Blumenthal GMBH [2012] EWCA Civ 996 the Court of Appeal refused to grant permission to appeal an order granted by Mr Justice Andrew Smith that a sole arbitrator be appointed in an arbitration between the applicants, Itochu Corporation (Itochu) and the respondents, Johann MK Blumenthal GMBH (Johann). …
UK: Commercial Court Upholds Tribunal’s Decision not to Establish Quantum of Damages
In Latvian Shipping Co v Russian People’s Insurance Co (ROSNO) Open Ended Joint Stock Co [2012] EWHC 1412 (Comm) the Court considered the appeal of an arbitration award on the grounds of serious irregularities within the Tribunal’s findings. …
UK: Court of Appeal Upholds Anti-Suit Injunction in Favour of Arbitration
In Sulamerica Cia Nacional de Seguros Sa v Enesa Engenharia SA [2012] EWCA Civ 638, the Court of Appeal found that the decision of Mr Justice Cooke (previously reported here) that an anti-suit injunction in favour of arbitration proceedings was valid would be upheld. …