Monde Petroleum SA v Westernzagros Ltd [2015] EWHC 67 (Comm) (22 January 2015)

Monde Petroleum SA v Westernzagros Ltd [2015] EWHC 67 (Comm) (22 January 2015)

The exclusive jurisdiction clause in the Termination Agreement superseded the arbitration clause in the CSA for all disputes arising out of both agreements. The tribunal correctly held it had no jurisdiction over WZL's counterclaims for declaratory relief. Security for costs was appropriate and should be provided by payment into court or a first-class London bank guarantee.

Citation
[2015] EWHC 67 (Comm)
Parties
Claimant in 2013 Folio 308 & 2014 Folio 1060, Defendant in 2014 Folio 975: Monde Petroleum SA; Defendant in 2013 Folio 308 & 2014 Folio 1060, Claimant in 2014 Folio 975: WesternZagros Limited
Jurisdiction
England and Wales
Judgment Date
22 January 2015
Procedural Posture
Commercial Court Proceedings and Arbitration Related Applications / Judgment on S.67 Arbitration Act 1996 Appeal, Enforcement of Arbitral Award, Jurisdiction Challenge, and Security for Costs Application
Outcome
WZL's s.67 appeal dismissed; tribunal's lack of jurisdiction confirmed; application to set aside enforcement order dismissed; security for costs ordered against Monde.
Legal Topics
Arbitration Agreement Scope, Jurisdiction Clauses, Misrepresentation, Duress, Security for Costs, Enforcement of Arbitral Awards, Settlement Agreements
Arbitration Commercial Law Contract Law Civil Procedure Arbitration Agreement Scope Jurisdiction Clauses Misrepresentation Duress +3 more

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Parties

Monde Petroleum SA

Claimant in 2013 Folio 308 & 2014 Folio 1060, Defendant in 2014 Folio 975

WesternZagros Limited

Defendant in 2013 Folio 308 & 2014 Folio 1060, Claimant in 2014 Folio 975

Procedural Posture

Commercial Court Proceedings and Arbitration Related Applications / Judgment on S.67 Arbitration Act 1996 Appeal, Enforcement of Arbitral Award, Jurisdiction Challenge, and Security for Costs Application

Legal Issues

  1. 1 Whether the arbitration agreement in the CSA survived the Termination Agreement and applied to WZL's counterclaims for declaratory relief
  2. 2 Whether the exclusive jurisdiction clause in the Termination Agreement superseded the arbitration clause in the CSA
  3. 3 Whether the tribunal had jurisdiction to determine WZL's counterclaims

Ratio Decidendi

The exclusive jurisdiction clause in the Termination Agreement superseded the arbitration clause in the CSA for all disputes arising out of both agreements. The tribunal correctly held it had no jurisdiction over WZL's counterclaims for declaratory relief. Security for costs was appropriate and should be provided by payment into court or a first-class London bank guarantee.

Court Disposition

WZL's s.67 appeal dismissed; tribunal's lack of jurisdiction confirmed; application to set aside enforcement order dismissed; security for costs ordered against Monde.

Orders

  • WZL's s.67 appeal dismissed
  • Order for costs award in favour of Monde to be paid by WZL