Fiona Trust & Holding Corp & Ors v Privalov & Ors

Fiona Trust & Holding Corp & Ors v Privalov & Ors

The principal issue of whether the charterparties and their arbitration clauses were procured by bribery and thus void ab initio is not within the scope of the arbitration clause; the court, not the arbitrator, has jurisdiction to determine this. The claimants have a good arguable case for rescission and for joining additional parties. Applications for stay pending arbitration are refused, and an anti-arbitration injunction is granted to restrain continuation of the arbitration.

Parties
Claimants: Fiona Trust & Holding Corporation & 20 Others; Defendants: Yuri Privalov & 17 Others
Jurisdiction
England and Wales
Judgment Date
20 October 2006
Procedural Posture
Commercial Court Application / Interlocutory Applications Regarding Amendment, Joinder, Stay, and Anti Arbitration Injunction
Outcome
Applications by claimants to amend pleadings, join additional parties, serve out of jurisdiction, and restrain arbitration granted; applications by defendants for stay of proceedings refused.
Legal Topics
Arbitration Clauses, Rescission for Bribery, Jurisdiction, Anti Arbitration Injunction, Joinder of Parties, Stay of Proceedings
Commercial Law Arbitration Contract Law Arbitration Clauses Rescission for Bribery Jurisdiction Anti Arbitration Injunction Joinder of Parties +1 more

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Parties

Fiona Trust & Holding Corporation & 20 Others

Claimants

Yuri Privalov & 17 Others

Defendants

Procedural Posture

Commercial Court Application / Interlocutory Applications Regarding Amendment, Joinder, Stay, and Anti Arbitration Injunction

Legal Issues

  1. 1 Whether disputes arising from alleged bribery and conspiracy fall within the scope of the arbitration clause in the charterparties
  2. 2 Whether the arbitration clause survives rescission of the charterparties for bribery
  3. 3 Whether the claimants have a good arguable case for rescission and for joining additional parties

Ratio Decidendi

The principal issue of whether the charterparties and their arbitration clauses were procured by bribery and thus void ab initio is not within the scope of the arbitration clause; the court, not the arbitrator, has jurisdiction to determine this. The claimants have a good arguable case for rescission and for joining additional parties. Applications for stay pending arbitration are refused, and an anti-arbitration injunction is granted to restrain continuation of the arbitration.

Court Disposition

Applications by claimants to amend pleadings, join additional parties, serve out of jurisdiction, and restrain arbitration granted; applications by defendants for stay of proceedings refused.

Orders

  • Permission to amend claim form and particulars of claim granted
  • Permission to add 22nd to 29th Proposed Claimants and 20th to 22nd Proposed Defendants granted