Kallang Shipping SA v Axa Assurances Senegal & Ors [2006] EWHC 2825 (Comm) (07 November 2006)

Kallang Shipping SA v Axa Assurances Senegal & Ors [2006] EWHC 2825 (Comm) (07 November 2006)

The Defendants' conduct in refusing to accept a Club letter of undertaking and insisting on a Senegalese bank guarantee, thereby seeking to frustrate the London arbitration clause, amounted to a breach of implied terms of the contract and/or was oppressive. The Claimant was entitled to the anti-suit injunction at the time it was granted. However, in light of subsequent undertakings and the current circumstances, there is no basis to continue or impose a new injunction. There is no justification for Axa France Assurance S.A. to remain a party to the proceedings.

Citation
[2006] EWHC 2825 (Comm)
Parties
Claimant: Kallang Shipping S.A.; First Defendant: Axa Assurances Senegal; Second Defendant: Comptoir Commercial Mandiaye Ndiaye (CCMN); Third Defendant: Axa France Assurance S.A.
Jurisdiction
England and Wales
Judgment Date
07 November 2006
Procedural Posture
Commercial Court Application (anti Suit Injunction) / Interlocutory Judgment on Application to Set Aside Anti Suit Injunction and Service Out of Jurisdiction
Outcome
Application to set aside anti-suit injunction refused as to First and Second Defendants; granted as to Third Defendant. No new injunction imposed. Service out of jurisdiction set aside as against Third Defendant.
Legal Topics
Anti Suit Injunctions, Arbitration Clauses, Jurisdiction, Enforcement of Security, Implied Contractual Terms, Vexatious and Oppressive Conduct
Commercial Law Arbitration Conflict of Laws Shipping Law Anti Suit Injunctions Arbitration Clauses Jurisdiction Enforcement of Security +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 13 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Kallang Shipping S.A.

Claimant

Axa Assurances Senegal

First Defendant

Comptoir Commercial Mandiaye Ndiaye (CCMN)

Second Defendant

Axa France Assurance S.A.

Third Defendant

Procedural Posture

Commercial Court Application (anti Suit Injunction) / Interlocutory Judgment on Application to Set Aside Anti Suit Injunction and Service Out of Jurisdiction

Legal Issues

  1. 1 Whether the Defendants' actions in Senegal breached the London arbitration clause or implied terms of the contract
  2. 2 Whether the Defendants' conduct was vexatious or oppressive justifying an anti-suit injunction
  3. 3 Whether the English court should continue or discharge the anti-suit injunction

Ratio Decidendi

The Defendants' conduct in refusing to accept a Club letter of undertaking and insisting on a Senegalese bank guarantee, thereby seeking to frustrate the London arbitration clause, amounted to a breach of implied terms of the contract and/or was oppressive. The Claimant was entitled to the anti-suit injunction at the time it was granted. However, in light of subsequent undertakings and the current circumstances, there is no basis to continue or impose a new injunction. There is no justification for Axa France Assurance S.A. to remain a party to the proceedings.

Court Disposition

Application to set aside anti-suit injunction refused as to First and Second Defendants; granted as to Third Defendant. No new injunction imposed. Service out of jurisdiction set aside as against Third Defendant.

Orders

  • Anti-suit injunction not discharged as to First and Second Defendants for the period up to undertakings; not continued or renewed going forward.
  • Service out of jurisdiction set aside as against Third Defendant (Axa France Assurance S.A.), which ceases to be a party.