ZHD v SQO [2021] EWHC 1262 (Comm) (29 April 2021)

ZHD v SQO [2021] EWHC 1262 (Comm) (29 April 2021)

The claimant established to a high degree of probability that the defendant was bound by a London arbitration clause incorporated into the bill of lading and was in breach by pursuing Vietnamese proceedings. The application was made before the foreign proceedings advanced on the merits, and there were no strong reasons not to grant the injunction. The court exercised its discretion to grant an interim antisuit injunction and ancillary relief to uphold the parties' contractual agreement.

Citation
[2021] EWHC 1262 (Comm)
Parties
Claimant/applicant: ZHD; Defendant/respondent: SQO
Jurisdiction
England and Wales
Judgment Date
29 April 2021
Procedural Posture
Commercial Court Application / Interim Application for Antisuit Injunction and Ancillary Relief
Outcome
Interim antisuit injunction granted; permission for alternative service and service out of jurisdiction granted.
Legal Topics
Antisuit Injunction, Arbitration Agreement, Jurisdiction, Service Out of Jurisdiction, Alternative Service
Arbitration Commercial Law Conflict of Laws Antisuit Injunction Arbitration Agreement Jurisdiction Service Out of Jurisdiction Alternative Service

Case Brief

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Parties

ZHD

Claimant/applicant

SQO

Defendant/respondent

Procedural Posture

Commercial Court Application / Interim Application for Antisuit Injunction and Ancillary Relief

Legal Issues

  1. 1 Whether an antisuit injunction should be granted to restrain foreign proceedings in breach of a London arbitration agreement
  2. 2 Whether the arbitration clause is incorporated into the bill of lading and binds the defendant
  3. 3 Whether the application was made promptly and before foreign proceedings are too far advanced

Ratio Decidendi

The claimant established to a high degree of probability that the defendant was bound by a London arbitration clause incorporated into the bill of lading and was in breach by pursuing Vietnamese proceedings. The application was made before the foreign proceedings advanced on the merits, and there were no strong reasons not to grant the injunction. The court exercised its discretion to grant an interim antisuit injunction and ancillary relief to uphold the parties' contractual agreement.

Court Disposition

Interim antisuit injunction granted; permission for alternative service and service out of jurisdiction granted.

Orders

  • Defendant restrained from pursuing Vietnamese proceedings in breach of the arbitration agreement.
  • Defendant required to use best endeavours to procure a stay of the Vietnamese action.