Schiffahrtsgesellschaft Detlef Von Appen GmbH v Wiener Allianz Versichrungs AG & Voest Alpine Intertrading GmbH [1997] EWCA Civ 1420 (16th April, 1997)

Schiffahrtsgesellschaft Detlef Von Appen GmbH v Wiener Allianz Versichrungs AG & Voest Alpine Intertrading GmbH [1997] EWCA Civ 1420 (16th April, 1997)

The Insurance Company, as subrogee/assignee of the Voyage Charterers' rights under the Voyage Charterparty, is bound by the arbitration clause and cannot pursue litigation in Brazil in breach of that clause. The English court has jurisdiction to grant an injunction to restrain such foreign proceedings, and the delay in seeking relief did not justify refusing the injunction. Leave to serve out of jurisdiction was properly granted as the claim was to enforce a contract governed by English law.

Citation
[1997] EWCA Civ 1420
Parties
Appellant/plaintiff/timecharterers: Schiffahrtsgesellschaft Detlef Von Appen GmbH; Respondent/defendant/insurance Company: Wiener Allianz Versicherungs AG; Respondent/defendant/voyage Charterers: Voest Alpine Intertrading GmbH
Jurisdiction
England and Wales
Procedural Posture
Appeal (civil) / Appeal From High Court (morison J), Seeking to Set Aside Leave to Serve Out of Jurisdiction and to Challenge Grant of Injunction
Outcome
Appeal dismissed; cross-appeal dismissed
Legal Topics
Anti Suit Injunctions, Arbitration Clauses, Assignment and Subrogation, Jurisdiction to Serve Out of Jurisdiction, Equitable Remedies, Delay in Seeking Injunctions
Arbitration Conflict of Laws Contract Law Shipping Law Anti Suit Injunctions Arbitration Clauses Assignment and Subrogation Jurisdiction to Serve Out of Jurisdiction +2 more

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Parties

Schiffahrtsgesellschaft Detlef Von Appen GmbH

Appellant/plaintiff/timecharterers

Wiener Allianz Versicherungs AG

Respondent/defendant/insurance Company

Voest Alpine Intertrading GmbH

Respondent/defendant/voyage Charterers

Procedural Posture

Appeal (civil) / Appeal From High Court (morison J), Seeking to Set Aside Leave to Serve Out of Jurisdiction and to Challenge Grant of Injunction

Legal Issues

  1. 1 Whether an assignee/subrogee (insurance company) is bound by an arbitration clause in the underlying contract when suing on assigned/subrogated rights
  2. 2 Whether an injunction should be granted to restrain foreign proceedings brought in breach of an arbitration clause
  3. 3 Whether delay in seeking an injunction bars relief

Ratio Decidendi

The Insurance Company, as subrogee/assignee of the Voyage Charterers' rights under the Voyage Charterparty, is bound by the arbitration clause and cannot pursue litigation in Brazil in breach of that clause. The English court has jurisdiction to grant an injunction to restrain such foreign proceedings, and the delay in seeking relief did not justify refusing the injunction. Leave to serve out of jurisdiction was properly granted as the claim was to enforce a contract governed by English law.

Court Disposition

Appeal dismissed; cross-appeal dismissed

Orders

  • Orders of Morison J upheld
  • Injunction against Insurance Company to restrain Brazilian proceedings maintained