Premier Cruises Ltd v DLA Piper Rus Ltd & Anor[2021] EWHC 151 (Comm) (01 February 2021)

Premier Cruises Ltd v DLA Piper Rus Ltd & Anor[2021] EWHC 151 (Comm) (01 February 2021)

The arbitration agreement in the Engagement Letter does not apply retroactively to work or advice given by DLA Russia prior to its execution. Under Russian law, there is no presumption of retroactivity for arbitration agreements; retroactive effect must be clearly indicated by the parties. The language of the Engagement Letter and the surrounding circumstances do not show an intention for retroactive application. Therefore, the claim against DLA Russia is not subject to a mandatory stay under section 9 of the Arbitration Act 1996.

Citation
[2021] EWHC 151 (Comm)
Parties
Claimant/respondent: Premier Cruises Limited; First Defendant/applicant: DLA Piper Rus Limited; Second Defendant/applicant: DLA Piper UK LLP
Jurisdiction
England and Wales
Judgment Date
01 February 2021
Procedural Posture
Commercial Court Claim for Damages in Contract And/or Tort for Professional Negligence; Application for Stay Under Section 9 Arbitration Act 1996 and Case Management Stay / Interlocutory Application for Stay of Proceedings
Outcome
Application for stay under section 9 of the Arbitration Act 1996 dismissed; case management stay also refused.
Legal Topics
Arbitration Agreements—scope and Retroactivity, Stay of Proceedings Under Arbitration Act 1996 S.9, Interpretation of Contracts Under Russian Law, Professional Negligence by Solicitors
Commercial Law Arbitration Professional Negligence Arbitration Agreements—scope and Retroactivity Stay of Proceedings Under Arbitration Act 1996 S.9 Interpretation of Contracts Under Russian Law Professional Negligence by Solicitors

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Parties

Premier Cruises Limited

Claimant/respondent

DLA Piper Rus Limited

First Defendant/applicant

DLA Piper UK LLP

Second Defendant/applicant

Procedural Posture

Commercial Court Claim for Damages in Contract And/or Tort for Professional Negligence; Application for Stay Under Section 9 Arbitration Act 1996 and Case Management Stay / Interlocutory Application for Stay of Proceedings

Legal Issues

  1. 1 Whether the arbitration agreement in the Engagement Letter applies retroactively to work/advice given by DLA Russia prior to its execution
  2. 2 Whether the claim against DLA Russia should be stayed under section 9 of the Arbitration Act 1996
  3. 3 Proper construction of the arbitration agreement under Russian law

Ratio Decidendi

The arbitration agreement in the Engagement Letter does not apply retroactively to work or advice given by DLA Russia prior to its execution. Under Russian law, there is no presumption of retroactivity for arbitration agreements; retroactive effect must be clearly indicated by the parties. The language of the Engagement Letter and the surrounding circumstances do not show an intention for retroactive application. Therefore, the claim against DLA Russia is not subject to a mandatory stay under section 9 of the Arbitration Act 1996.

Court Disposition

Application for stay under section 9 of the Arbitration Act 1996 dismissed; case management stay also refused.

Orders

  • Claim against DLA Russia not stayed under section 9 Arbitration Act 1996.
  • No case management stay granted in respect of DLA UK.