Qingdao Huiquan Shipping Company v Shanghai Dong He Xin Industry Group Co Ltd

Qingdao Huiquan Shipping Company v Shanghai Dong He Xin Industry Group Co Ltd

SDHX's claim in China is in substance premised on the Settlement Agreement, which contains a London arbitration clause. By relying on the Settlement Agreement, SDHX must also be bound by its arbitration clause. There are no strong reasons or excessive delay to refuse interim relief. Accordingly, an interim anti-suit injunction is granted restraining SDHX from continuing the Chinese proceedings.

Parties
Claimant/applicant: Qingdao Huiquan Shipping Company; Defendant/respondent: Shanghai Dong He Xin Industry Group Co Ltd
Jurisdiction
England and Wales
Judgment Date
25 September 2018
Procedural Posture
Arbitration Related Commercial Claim / Interim Application for Anti Suit Injunction
Outcome
Interim anti-suit injunction granted
Legal Topics
Anti Suit Injunctions, Arbitration Agreements, Jurisdiction, Delay in Seeking Relief, Privity of Contract
Commercial Law Arbitration International Law Anti Suit Injunctions Arbitration Agreements Jurisdiction Delay in Seeking Relief Privity of Contract

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Parties

Qingdao Huiquan Shipping Company

Claimant/applicant

Shanghai Dong He Xin Industry Group Co Ltd

Defendant/respondent

Procedural Posture

Arbitration Related Commercial Claim / Interim Application for Anti Suit Injunction

Legal Issues

  1. 1 Whether an interim anti-suit injunction should be granted to restrain proceedings in China allegedly in breach of a London arbitration clause
  2. 2 Whether SDHX, not a party to the Settlement Agreement, is bound by the arbitration clause
  3. 3 Whether delay in seeking anti-suit relief bars the injunction

Ratio Decidendi

SDHX's claim in China is in substance premised on the Settlement Agreement, which contains a London arbitration clause. By relying on the Settlement Agreement, SDHX must also be bound by its arbitration clause. There are no strong reasons or excessive delay to refuse interim relief. Accordingly, an interim anti-suit injunction is granted restraining SDHX from continuing the Chinese proceedings.

Court Disposition

Interim anti-suit injunction granted

Orders

  • SDHX is restrained from continuing proceedings against Owners before the Courts of the People’s Republic of China pending further order.
  • Costs to be determined following submissions from Owners.