Sabbagh v Khoury & Ors

Sabbagh v Khoury & Ors

The Court of Appeal has determined that Sana is not bound by Article 45 of the CCG Articles in respect of the asset misappropriation and share deprivation claims, as she is not suing as a shareholder or on behalf of Hassib as a shareholder, and the claims are not based on the Articles. There is no agreement to arbitrate these claims. It is therefore vexatious and oppressive for the Arbitration Claimants to continue the Lebanese arbitration against Sana, and it is just and convenient to grant an interim injunction restraining them from doing so.

Parties
Claimant: Sana Hassib Sabbagh; First Defendant: Wael Said Khoury; Second Defendant: Said Toufic Khoury (deceased); Third Defendant: Samer Said Khoury; Fourth Defendant: Toufic Said Khoury; Fifth Defendant: Samir Hassib Sabbagh; Sixth Defendant: Suheil Hassib Sabbagh; Seventh Defendant: Wahbe Abdullah Tamari; Eighth Defendant: Consolidated Contractors Group SAL (Holding Company); Ninth Defendant: Consolidated Contractors International Company SAL (Offshore); Tenth Defendant: Hassib Holding SAL
Jurisdiction
England and Wales
Judgment Date
31 May 2018
Procedural Posture
Commercial Court Litigation (anti Arbitration Injunction) / Judgment on Application for Interim Injunction
Outcome
Interim injunction granted
Legal Topics
Anti Arbitration Injunctions, Issue Estoppel, Jurisdiction, Recognition and Enforcement of Arbitral Awards
Civil Procedure Arbitration Conflict of Laws Anti Arbitration Injunctions Issue Estoppel Jurisdiction Recognition and Enforcement of Arbitral Awards

Case Brief

Summary, issues, holding and outcome

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Parties

Sana Hassib Sabbagh

Claimant

Wael Said Khoury

First Defendant

Said Toufic Khoury (deceased)

Second Defendant

Samer Said Khoury

Third Defendant

Toufic Said Khoury

Fourth Defendant

Samir Hassib Sabbagh

Fifth Defendant

Suheil Hassib Sabbagh

Sixth Defendant

Wahbe Abdullah Tamari

Seventh Defendant

Consolidated Contractors Group SAL (Holding Company)

Eighth Defendant

Consolidated Contractors International Company SAL (Offshore)

Ninth Defendant

Hassib Holding SAL

Tenth Defendant

Procedural Posture

Commercial Court Litigation (anti Arbitration Injunction) / Judgment on Application for Interim Injunction

Legal Issues

  1. 1 Whether the claimant is bound by an arbitration agreement (Article 45 of CCG Articles) for the asset misappropriation and share deprivation claims
  2. 2 Whether the English court should grant an interim anti-arbitration injunction restraining the Lebanese arbitration
  3. 3 Whether issue estoppel applies to the findings of the Court of Appeal regarding the arbitration agreement

Ratio Decidendi

The Court of Appeal has determined that Sana is not bound by Article 45 of the CCG Articles in respect of the asset misappropriation and share deprivation claims, as she is not suing as a shareholder or on behalf of Hassib as a shareholder, and the claims are not based on the Articles. There is no agreement to arbitrate these claims. It is therefore vexatious and oppressive for the Arbitration Claimants to continue the Lebanese arbitration against Sana, and it is just and convenient to grant an interim injunction restraining them from doing so.

Court Disposition

Interim injunction granted

Orders

  • The Arbitration Claimants are restrained from prosecuting the Lebanese Arbitration against Sana, required to take steps to stay it, and restrained from seeking recognition or enforcement of any award made in that arbitration, subject to permission to apply in case of material change of circumstances.