LLC EuroChem North-West-2 v Tecnimont SPA & Anor [2023] EWCA Civ 688 (21 June 2023)

LLC EuroChem North-West-2 v Tecnimont SPA & Anor [2023] EWCA Civ 688 (21 June 2023)

Tecnimont's intervention in the Italian proceedings constituted commencement or pursuit of proceedings for the purpose of impairing payment under the bonds, breaching both the anti-suit injunction and the London arbitration clauses. The anti-suit injunction was properly construed to prohibit such conduct, and there was no basis to vary the injunction to permit Tecnimont's participation.

Citation
[2023] EWCA Civ 688
Parties
Claimant/respondent: LLC EuroChem North-West-2; Defendant/appellant: Tecnimont S.P.A.; Defendant/appellant: LLC MT Russia
Jurisdiction
England and Wales
Judgment Date
21 June 2023
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Anti Suit Injunctions, Arbitration Agreements, Jurisdiction Clauses, Contempt of Court, Variation of Injunctions
Commercial Law Arbitration Injunctions Anti Suit Injunctions Arbitration Agreements Jurisdiction Clauses Contempt of Court Variation of Injunctions

Case Brief

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Parties

LLC EuroChem North-West-2

Claimant/respondent

Tecnimont S.P.A.

Defendant/appellant

LLC MT Russia

Defendant/appellant

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether Tecnimont breached the anti-suit injunction by intervening in Italian proceedings
  2. 2 Proper construction and scope of the anti-suit injunction
  3. 3 Whether the anti-suit injunction should be varied to permit Tecnimont's participation in Italian proceedings

Ratio Decidendi

Tecnimont's intervention in the Italian proceedings constituted commencement or pursuit of proceedings for the purpose of impairing payment under the bonds, breaching both the anti-suit injunction and the London arbitration clauses. The anti-suit injunction was properly construed to prohibit such conduct, and there was no basis to vary the injunction to permit Tecnimont's participation.

Court Disposition

Appeal dismissed

Orders

  • Declaration that Tecnimont breached the anti-suit injunction by intervening in the Italian proceedings
  • Refusal to vary the anti-suit injunction to permit Tecnimont's participation