Claxton Engineering Services Ltd v TXM Olaj-Es Gazkutato KTF [2011] EWHC 345 (Comm) (01 February 2011)

Claxton Engineering Services Ltd v TXM Olaj-Es Gazkutato KTF [2011] EWHC 345 (Comm) (01 February 2011)

The English court has jurisdiction to grant an anti-arbitration injunction restraining the Hungarian arbitration because the contract contains an exclusive English jurisdiction clause, the English court has already determined there is no arbitration agreement, and the continuation of the arbitration would breach the claimant's legal rights and be vexatious and oppressive. The ECJ West Tankers decision does not preclude such an injunction as it applies only to court proceedings, not arbitrations.

Citation
[2011] EWHC 345 (Comm)
Parties
Applicant/claimant: Claxton Engineering Services Limited; Respondent/defendant: TXM Olaj-Es Gazkutato KTF
Jurisdiction
England and Wales
Judgment Date
01 February 2011
Procedural Posture
Commercial Court Application for Anti Arbitration Injunction / Judgment on Application for Injunction
Outcome
Injunction granted
Legal Topics
Anti Arbitration Injunctions, Exclusive Jurisdiction Clauses, Arbitration Agreements, Jurisdictional Disputes, EU Regulation 44/2001, New York Convention
Commercial Law Civil Procedure International Arbitration Anti Arbitration Injunctions Exclusive Jurisdiction Clauses Arbitration Agreements Jurisdictional Disputes EU Regulation 44/2001 +1 more

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Parties

Claxton Engineering Services Limited

Applicant/claimant

TXM Olaj-Es Gazkutato KTF

Respondent/defendant

Procedural Posture

Commercial Court Application for Anti Arbitration Injunction / Judgment on Application for Injunction

Legal Issues

  1. 1 Whether the English court has jurisdiction to grant an anti-arbitration injunction restraining proceedings in another EU Member State
  2. 2 Whether the continuation of the Hungarian arbitration is a breach of an exclusive English jurisdiction clause
  3. 3 Whether exceptional circumstances exist to justify an anti-arbitration injunction

Ratio Decidendi

The English court has jurisdiction to grant an anti-arbitration injunction restraining the Hungarian arbitration because the contract contains an exclusive English jurisdiction clause, the English court has already determined there is no arbitration agreement, and the continuation of the arbitration would breach the claimant's legal rights and be vexatious and oppressive. The ECJ West Tankers decision does not preclude such an injunction as it applies only to court proceedings, not arbitrations.

Court Disposition

Injunction granted

Orders

  • The defendant is restrained from pursuing the arbitration commenced in Hungary under the HCCI rules in breach of the exclusive English jurisdiction clause.