West Tankers Inc v Allianz SpA & Anor [2012] EWHC 854 (Comm) (04 April 2012)

West Tankers Inc v Allianz SpA & Anor [2012] EWHC 854 (Comm) (04 April 2012)

Arbitral tribunals are not deprived of jurisdiction to award damages for breach of an obligation to arbitrate by reason of EU law; the principle of effective judicial protection under EU law does not bind arbitral tribunals in the same way as national courts, because arbitration falls outside the scope of Regulation (EC) 44/2001; the tribunal erred in law in concluding it lacked jurisdiction to award damages or indemnity for breach of the obligation to arbitrate.

Citation
[2012] EWHC 854 (Comm)
Parties
Claimant/appellant: West Tankers Inc; Defendant/respondent: Allianz SpA (formerly Riunione Adriatica Sicurta); Defendant/respondent: Generali Assicurazioni Generali SpA
Jurisdiction
England and Wales
Judgment Date
04 April 2012
Procedural Posture
Appeal Under Arbitration Act 1996, S.69 / Judgment on Appeal From Arbitral Award
Outcome
Appeal allowed; arbitral tribunal has jurisdiction to award damages for breach of obligation to arbitrate.
Legal Topics
Arbitral Jurisdiction, EU Principle of Effective Judicial Protection, Anti Suit Injunctions, Damages for Breach of Arbitration Agreement, Interaction Between EU Law and Arbitration
Arbitration European Union Law Commercial Law Arbitral Jurisdiction EU Principle of Effective Judicial Protection Anti Suit Injunctions Damages for Breach of Arbitration Agreement Interaction Between EU Law and Arbitration

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Parties

West Tankers Inc

Claimant/appellant

Allianz SpA (formerly Riunione Adriatica Sicurta)

Defendant/respondent

Generali Assicurazioni Generali SpA

Defendant/respondent

Procedural Posture

Appeal Under Arbitration Act 1996, S.69 / Judgment on Appeal From Arbitral Award

Legal Issues

  1. 1 Whether arbitral tribunal is deprived of jurisdiction to award equitable damages for breach of obligation to arbitrate by reason of EU law
  2. 2 Whether principle of effective judicial protection under EU law binds arbitral tribunals

Ratio Decidendi

Arbitral tribunals are not deprived of jurisdiction to award damages for breach of an obligation to arbitrate by reason of EU law; the principle of effective judicial protection under EU law does not bind arbitral tribunals in the same way as national courts, because arbitration falls outside the scope of Regulation (EC) 44/2001; the tribunal erred in law in concluding it lacked jurisdiction to award damages or indemnity for breach of the obligation to arbitrate.

Court Disposition

Appeal allowed; arbitral tribunal has jurisdiction to award damages for breach of obligation to arbitrate.

Orders

  • Arbitral award set aside to the extent it denied jurisdiction to award damages or indemnity.
  • Matter remitted to arbitral tribunal for determination of damages and indemnity claims.