Unicredit Bank GmbH v Ruschemalliance LLC

Unicredit Bank GmbH v Ruschemalliance LLC

The arbitration agreement is governed by English law as per the express choice in the bonds, and the exception for the law of the seat under Enka does not apply because French law does not contain a provision requiring the arbitration agreement to be governed by French law. England is the proper forum as it is the only jurisdiction where effective anti-suit relief can be granted; substantial justice cannot be obtained in France or Russia. RCA is in breach of its agreement to arbitrate by pursuing Russian proceedings, and a final anti-suit injunction is necessary.

Parties
Appellant/claimant: UniCredit Bank GmbH; Respondent/defendant: RusChemAlliance LLC
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal allowed
Legal Topics
Anti Suit Injunctions, Governing Law of Arbitration Agreements, Jurisdiction, Enforcement of Arbitration Agreements, Sanctions and International Contracts
Arbitration Conflict of Laws Commercial Law Anti Suit Injunctions Governing Law of Arbitration Agreements Jurisdiction Enforcement of Arbitration Agreements Sanctions and International Contracts

Case Brief

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Parties

UniCredit Bank GmbH

Appellant/claimant

RusChemAlliance LLC

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the English court has jurisdiction to grant an anti-suit injunction to restrain Russian proceedings when the contract is governed by English law but provides for arbitration in Paris
  2. 2 Whether the arbitration agreement is governed by English or French law
  3. 3 Whether England is the appropriate forum for the claim

Ratio Decidendi

The arbitration agreement is governed by English law as per the express choice in the bonds, and the exception for the law of the seat under Enka does not apply because French law does not contain a provision requiring the arbitration agreement to be governed by French law. England is the proper forum as it is the only jurisdiction where effective anti-suit relief can be granted; substantial justice cannot be obtained in France or Russia. RCA is in breach of its agreement to arbitrate by pursuing Russian proceedings, and a final anti-suit injunction is necessary.

Court Disposition

Appeal allowed

Orders

  • Declaration that the English court has jurisdiction
  • Mandatory final anti-suit injunction granted restraining RCA from prosecuting Russian proceedings and ordering RCA to terminate those proceedings