Perkins Engines Company Ltdv Ghaddar & Anor (Rev 1) [2018] EWHC 1500 (Comm) (08 June 2018)

Perkins Engines Company Ltdv Ghaddar & Anor (Rev 1) [2018] EWHC 1500 (Comm) (08 June 2018)

The phrase 'reciprocal enforcement procedures between the United Kingdom and the country in which the Distributor is located' in Clause 23.6 of the Distributor Agreement requires the existence of a bilateral or multilateral treaty providing for mutual enforcement of judgments. As no such treaty exists between the UK and Lebanon, the arbitration agreement is engaged. The Lebanese proceedings are in breach of the arbitration agreement, and an interim anti-suit injunction is appropriate to restrain the Defendants from pursuing those proceedings.

Citation
[2018] EWHC 1500 (Comm)
Parties
Applicant/claimant: Perkins Engines Company Limited; Respondent/defendant: Mohammed Samih Hussein Ghaddar; Respondent/defendant: Ghaddar Machinery Co. S. A. L.
Jurisdiction
England and Wales
Judgment Date
08 June 2018
Procedural Posture
Arbitration Claim / Interim Injunction Application / Interim Application for Anti Suit Injunction
Outcome
Interim anti-suit injunction granted
Legal Topics
Anti Suit Injunction, Arbitration Agreement Construction, Jurisdiction, Enforcement of Foreign Judgments
Arbitration Contract Law Private International Law Anti Suit Injunction Arbitration Agreement Construction Jurisdiction Enforcement of Foreign Judgments

Case Brief

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Parties

Perkins Engines Company Limited

Applicant/claimant

Mohammed Samih Hussein Ghaddar

Respondent/defendant

Ghaddar Machinery Co. S. A. L.

Respondent/defendant

Procedural Posture

Arbitration Claim / Interim Injunction Application / Interim Application for Anti Suit Injunction

Legal Issues

  1. 1 Proper construction of 'reciprocal enforcement procedures' in arbitration clause
  2. 2 Whether reciprocal enforcement procedures exist between UK and Lebanon
  3. 3 Whether anti-suit injunction should be granted to restrain Lebanese proceedings

Ratio Decidendi

The phrase 'reciprocal enforcement procedures between the United Kingdom and the country in which the Distributor is located' in Clause 23.6 of the Distributor Agreement requires the existence of a bilateral or multilateral treaty providing for mutual enforcement of judgments. As no such treaty exists between the UK and Lebanon, the arbitration agreement is engaged. The Lebanese proceedings are in breach of the arbitration agreement, and an interim anti-suit injunction is appropriate to restrain the Defendants from pursuing those proceedings.

Court Disposition

Interim anti-suit injunction granted

Orders

  • Defendants restrained from pursuing or taking further steps in the Lebanese proceedings commenced on 12 April 2018.
  • Defendants restrained from commencing or pursuing any further proceedings concerning disputes arising from or relating to the Distributor Agreement in any court or tribunal other than a tribunal constituted in accordance with Clause 23.6, or before the English Courts.