Microsoft Mobile OY (Ltd) v Sony Europe Ltd & Ors [2017] EWHC 374 (Ch) (28 February 2017)

Microsoft Mobile OY (Ltd) v Sony Europe Ltd & Ors [2017] EWHC 374 (Ch) (28 February 2017)

The court held that the claims against Sony Europe Limited fall within the scope of the arbitration clause in the Product Purchase Agreement and must be stayed under section 9 Arbitration Act 1996. The claims against Sony Corporation are similarly stayed. The court found that Microsoft Mobile did not establish a good arguable case under the necessary or proper party gateway or damage within jurisdiction gateway for LG Chem and Samsung. England and Wales is not clearly and distinctly the proper forum for trial. The claimant failed to make full and frank disclosure in the service out application.

Citation
[2017] EWHC 374 (Ch)
Parties
Claimant: Microsoft Mobile Oy (Ltd); First Defendant: Sony Europe Limited; Second Defendant: Sony Corporation; Fourth Defendant: LG Chem Limited; Sixth Defendant: Samsung SDI Co Limited
Jurisdiction
England and Wales
Judgment Date
28 February 2017
Procedural Posture
Commercial Competition Claim / Interlocutory Applications: Stay for Arbitration and Jurisdictional Challenge
Outcome
Stay granted against Sony Europe Limited and Sony Corporation; service out set aside for LG Chem and Samsung; proceedings against Panasonic and Sanyo withdrawn.
Legal Topics
Cartel Damages, Jurisdiction, Arbitration Clause, Assignment of Claims, Service Out of Jurisdiction, Forum Conveniens
Competition Law Commercial Law Private International Law Arbitration Cartel Damages Jurisdiction Arbitration Clause Assignment of Claims +2 more

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Parties

Microsoft Mobile Oy (Ltd)

Claimant

Sony Europe Limited

First Defendant

Sony Corporation

Second Defendant

LG Chem Limited

Fourth Defendant

Samsung SDI Co Limited

Sixth Defendant

Procedural Posture

Commercial Competition Claim / Interlocutory Applications: Stay for Arbitration and Jurisdictional Challenge

Legal Issues

  1. 1 Whether claims against Sony Europe Limited and Sony Corporation should be stayed in favour of arbitration under section 9 Arbitration Act 1996
  2. 2 Whether the English court has jurisdiction over foreign defendants under Practice Direction 6B gateways
  3. 3 Whether England and Wales is the proper forum for trial

Ratio Decidendi

The court held that the claims against Sony Europe Limited fall within the scope of the arbitration clause in the Product Purchase Agreement and must be stayed under section 9 Arbitration Act 1996. The claims against Sony Corporation are similarly stayed. The court found that Microsoft Mobile did not establish a good arguable case under the necessary or proper party gateway or damage within jurisdiction gateway for LG Chem and Samsung. England and Wales is not clearly and distinctly the proper forum for trial. The claimant failed to make full and frank disclosure in the service out application.

Court Disposition

Stay granted against Sony Europe Limited and Sony Corporation; service out set aside for LG Chem and Samsung; proceedings against Panasonic and Sanyo withdrawn.

Orders

  • Proceedings against Sony Europe Limited and Sony Corporation stayed under section 9 Arbitration Act 1996.
  • Service out of jurisdiction set aside for LG Chem Limited and Samsung SDI Co Limited.