Excalibur Ventures LLC v Texas Keystone Inc & Ors [2011] EWHC 1624 (Comm) (28 June 2011)

Excalibur Ventures LLC v Texas Keystone Inc & Ors [2011] EWHC 1624 (Comm) (28 June 2011)

The English court has jurisdiction to grant an anti-arbitration injunction restraining Excalibur from pursuing ICC arbitration against the Gulf Defendants because the Gulf Defendants are not signatories to the Collaboration Agreement or its arbitration clause, have not submitted to the ICC's jurisdiction, and the question of whether they are bound by the arbitration agreement is properly for the English court to determine. The court should direct a preliminary issue as to whether the Gulf Defendants are bound by the arbitration clause and restrain Excalibur from pursuing the arbitration against them pending determination of that issue. The Commercial Court proceedings are substantive, not...

Citation
[2011] EWHC 1624 (Comm)
Parties
Claimant: Excalibur Ventures LLC; First Defendant: Texas Keystone Inc; Second Defendant: Gulf Keystone Petroleum Limited; Third Defendant: Gulf Keystone Petroleum International Limited; Fourth Defendant: Gulf Keystone Petroleum (UK) Limited
Jurisdiction
England and Wales
Judgment Date
28 June 2011
Procedural Posture
Commercial Court Proceedings (part 7 Claim) and Application for Anti Arbitration Injunction and Stay / Interlocutory Application; Order on Anti Arbitration Injunction and Stay Pending Trial of Preliminary Issue
Outcome
Anti-arbitration injunction granted restraining Excalibur from pursuing ICC arbitration against the Gulf Defendants; application for stay of Commercial Court proceedings dismissed; preliminary issue directed as to whether Gulf Defendants are bound by the arbitration agreement.
Legal Topics
Anti Arbitration Injunctions, Jurisdiction of English Courts, Arbitrability, Stay of Proceedings, Enforcement of Arbitration Agreements, Corporate Veil, Agency, Force Majeure, Oil and Gas Contracts
Commercial Law Arbitration Contract Law Anti Arbitration Injunctions Jurisdiction of English Courts Arbitrability Stay of Proceedings Enforcement of Arbitration Agreements +4 more

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Parties

Excalibur Ventures LLC

Claimant

Texas Keystone Inc

First Defendant

Gulf Keystone Petroleum Limited

Second Defendant

Gulf Keystone Petroleum International Limited

Third Defendant

Gulf Keystone Petroleum (UK) Limited

Fourth Defendant

Procedural Posture

Commercial Court Proceedings (part 7 Claim) and Application for Anti Arbitration Injunction and Stay / Interlocutory Application; Order on Anti Arbitration Injunction and Stay Pending Trial of Preliminary Issue

Legal Issues

  1. 1 Whether the English court has jurisdiction to grant an anti-arbitration injunction restraining Excalibur from pursuing ICC arbitration against the Gulf Defendants
  2. 2 Whether the Gulf Defendants are bound by the arbitration clause in the Collaboration Agreement
  3. 3 Whether the Commercial Court proceedings should be stayed pending determination of jurisdictional challenges in the arbitration

Ratio Decidendi

The English court has jurisdiction to grant an anti-arbitration injunction restraining Excalibur from pursuing ICC arbitration against the Gulf Defendants because the Gulf Defendants are not signatories to the Collaboration Agreement or its arbitration clause, have not submitted to the ICC's jurisdiction, and the question of whether they are bound by the arbitration agreement is properly for the English court to determine. The court should direct a preliminary issue as to whether the Gulf Defendants are bound by the arbitration clause and restrain Excalibur from pursuing the arbitration against them pending determination of that issue. The Commercial Court proceedings are substantive, not...

Court Disposition

Anti-arbitration injunction granted restraining Excalibur from pursuing ICC arbitration against the Gulf Defendants; application for stay of Commercial Court proceedings dismissed; preliminary issue directed as to whether Gulf Defendants are bound by the arbitration agreement.

Orders

  • Excalibur restrained from pursuing or assisting in ICC arbitration against the Gulf Defendants pending final determination or further order.
  • Excalibur's application for a stay of the Commercial Court proceedings dismissed.