Sabbagh v Khoury & Ors

Sabbagh v Khoury & Ors

The English court has jurisdiction to grant anti-arbitration injunctions against foreign-seated arbitrations on grounds of vexatious and oppressive conduct, but only in exceptional circumstances and with caution. However, where the claim falls within the arbitration agreement, the court should not grant such an injunction. The assets claim in the Lebanese arbitration does not fall within the arbitration agreement and the injunction is upheld as regards that claim; the shares claim does fall within the arbitration agreement and the injunction is discharged as regards that claim.

Parties
Respondent/claimant: Sana Hassib Sabbagh; Appellant/defendant: Wael Said Khoury; Appellant/defendant: Said Toufic Khoury (deceased); Appellant/defendant: Samer Said Khoury; Appellant/defendant: Toufic Said Khoury; Appellant/defendant: Samir Hassib Sabbagh; Appellant/defendant: Suheil Hassib Sabbagh; Appellant/defendant: Wahbe Abdullah Tamari; Appellant/defendant: Consolidated Contractors Group SAL (Holding Company); Appellant/defendant: Consolidated Contractors International Company SAL (Offshore); Appellant/defendant: Hassib Holding SAL
Jurisdiction
England and Wales
Judgment Date
12 July 2019
Procedural Posture
Appeal / Judgment on Appeal Against Grant of Injunction
Outcome
Appeal allowed in part, injunction discharged as regards shares claim, upheld as regards assets claim.
Legal Topics
Anti Arbitration Injunctions, Jurisdiction, Vexatious and Oppressive Proceedings, Natural Forum, Arbitration Agreements
Civil Procedure Arbitration International Law Anti Arbitration Injunctions Jurisdiction Vexatious and Oppressive Proceedings Natural Forum Arbitration Agreements

Case Brief

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Parties

Sana Hassib Sabbagh

Respondent/claimant

Wael Said Khoury

Appellant/defendant

Said Toufic Khoury (deceased)

Appellant/defendant

Samer Said Khoury

Appellant/defendant

Toufic Said Khoury

Appellant/defendant

Samir Hassib Sabbagh

Appellant/defendant

Suheil Hassib Sabbagh

Appellant/defendant

Wahbe Abdullah Tamari

Appellant/defendant

Consolidated Contractors Group SAL (Holding Company)

Appellant/defendant

Consolidated Contractors International Company SAL (Offshore)

Appellant/defendant

Hassib Holding SAL

Appellant/defendant

Procedural Posture

Appeal / Judgment on Appeal Against Grant of Injunction

Legal Issues

  1. 1 Whether English courts have jurisdiction to grant anti-arbitration injunctions against foreign-seated arbitrations on grounds of vexatious and oppressive conduct
  2. 2 Whether such jurisdiction is limited to cases where England is the natural forum for the dispute
  3. 3 Whether the claims in the Lebanese arbitration fall within the arbitration agreement (article 45)

Ratio Decidendi

The English court has jurisdiction to grant anti-arbitration injunctions against foreign-seated arbitrations on grounds of vexatious and oppressive conduct, but only in exceptional circumstances and with caution. However, where the claim falls within the arbitration agreement, the court should not grant such an injunction. The assets claim in the Lebanese arbitration does not fall within the arbitration agreement and the injunction is upheld as regards that claim; the shares claim does fall within the arbitration agreement and the injunction is discharged as regards that claim.

Court Disposition

Appeal allowed in part, injunction discharged as regards shares claim, upheld as regards assets claim.

Orders

  • Injunction restraining pursuit of assets claim in Lebanese arbitration upheld.
  • Injunction restraining pursuit of shares claim in Lebanese arbitration discharged.