Qingdao Huiquan Shipping Company v Shanghai Dong He Xin Industry Group Co Ltd [2018] EWHC 3009 (Comm) (25 September 2018)

Qingdao Huiquan Shipping Company v Shanghai Dong He Xin Industry Group Co Ltd [2018] EWHC 3009 (Comm) (25 September 2018)

SDHX's claim in China is in substance premised on the Settlement Agreement, which contains a London arbitration clause, and SDHX cannot seek the benefit of the agreement without being bound by its forum provisions. There are no strong reasons or excessive delay to bar interim relief. Accordingly, an interim anti-suit injunction is appropriate.

Citation
[2018] EWHC 3009 (Comm)
Parties
Claimant/applicant: Qingdao Huiquan Shipping Company; Defendant/respondent: Shanghai Dong He Xin Industry Group Co Ltd
Jurisdiction
England and Wales
Judgment Date
25 September 2018
Procedural Posture
Arbitration Claim (part 8) for Interim Anti Suit Injunction / Inter Partes Hearing for Interim Relief
Outcome
Interim anti-suit injunction granted
Legal Topics
Anti Suit Injunction, Arbitration Agreement, Jurisdiction, Delay in Seeking Relief
Commercial Law Arbitration Shipping Law Anti Suit Injunction Arbitration Agreement Jurisdiction Delay in Seeking Relief

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Parties

Qingdao Huiquan Shipping Company

Claimant/applicant

Shanghai Dong He Xin Industry Group Co Ltd

Defendant/respondent

Procedural Posture

Arbitration Claim (part 8) for Interim Anti Suit Injunction / Inter Partes Hearing for Interim Relief

Legal Issues

  1. 1 Whether SDHX should be restrained from continuing Chinese proceedings in breach of London arbitration clause
  2. 2 Whether SDHX is bound by the arbitration clause despite not being a party to the Settlement Agreement
  3. 3 Whether delay in seeking anti-suit relief bars interim injunction

Ratio Decidendi

SDHX's claim in China is in substance premised on the Settlement Agreement, which contains a London arbitration clause, and SDHX cannot seek the benefit of the agreement without being bound by its forum provisions. There are no strong reasons or excessive delay to bar interim relief. Accordingly, an interim anti-suit injunction is appropriate.

Court Disposition

Interim anti-suit injunction granted

Orders

  • SDHX restrained from continuing proceedings against Owners before the Courts of the People's Republic of China pending further order
  • Costs to be determined