Unicredit Bank GmbH v Ruschemalliance LLC [2024] EWCA Civ 64 (02 February 2024)

Unicredit Bank GmbH v Ruschemalliance LLC [2024] EWCA Civ 64 (02 February 2024)

The arbitration agreement in the bonds is governed by English law, not French law, as the parties' express choice of English law for the main contract extends to the arbitration agreement; French law does not contain a provision sufficient to negate this inference. England is the proper forum as only the English court can grant an anti-suit injunction, and substantial justice cannot be obtained in France or Russia due to lack of enforceability and risk of anti-suit injunctions from Russian courts. The English court has jurisdiction and should grant a mandatory final anti-suit injunction restraining the Russian proceedings.

Citation
[2024] EWCA Civ 64
Parties
Appellant/claimant: UniCredit Bank GmbH; Respondent/defendant: RusChemAlliance LLC
Jurisdiction
England and Wales
Judgment Date
02 February 2024
Procedural Posture
Appeal From High Court (commercial Court) / Final Appellate Judgment
Outcome
Appeal allowed; mandatory final anti-suit injunction granted
Legal Topics
Anti Suit Injunctions, Governing Law of Arbitration Agreements, Forum Non Conveniens, Enforcement of Arbitration Agreements, Sanctions and Public Policy
International Arbitration Contract Law Civil Procedure Anti Suit Injunctions Governing Law of Arbitration Agreements Forum Non Conveniens Enforcement of Arbitration Agreements Sanctions and Public Policy

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Parties

UniCredit Bank GmbH

Appellant/claimant

RusChemAlliance LLC

Respondent/defendant

Procedural Posture

Appeal From High Court (commercial Court) / Final Appellate Judgment

Legal Issues

  1. 1 Does the English court have jurisdiction to grant an anti-suit injunction restraining proceedings in Russia when the contract is governed by English law but provides for arbitration in Paris?
  2. 2 What is the governing law of the arbitration agreement in the bonds?
  3. 3 Is England the appropriate forum for the claim for an anti-suit injunction?

Ratio Decidendi

The arbitration agreement in the bonds is governed by English law, not French law, as the parties' express choice of English law for the main contract extends to the arbitration agreement; French law does not contain a provision sufficient to negate this inference. England is the proper forum as only the English court can grant an anti-suit injunction, and substantial justice cannot be obtained in France or Russia due to lack of enforceability and risk of anti-suit injunctions from Russian courts. The English court has jurisdiction and should grant a mandatory final anti-suit injunction restraining the Russian proceedings.

Court Disposition

Appeal allowed; mandatory final anti-suit injunction granted

Orders

  • RusChemAlliance LLC is restrained from prosecuting its claims in the Russian proceedings.
  • RusChemAlliance LLC is ordered to bring the Russian proceedings to an immediate end.