Microsoft Mobile OY (Ltd) v Sony Europe Ltd & Ors

Microsoft Mobile OY (Ltd) v Sony Europe Ltd & Ors

The claims against Sony Europe Limited and Sony Corporation are stayed under section 9 of the Arbitration Act 1996 due to the scope of the arbitration clause in the PPA. The claims against the other Defendants do not fall within the necessary or proper party or tort gateways for service out, as Microsoft Mobile failed to show a good arguable case that substantial damage was sustained within the jurisdiction by any assignor. The order for service out is set aside. Even if the gateways had been satisfied, England and Wales would not be clearly and distinctly the proper forum. There was also material non-disclosure on the application for service out.

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; Third Defendant: Panasonic Corporation; Fifth Defendant: Sanyo Electric Co Limited
Jurisdiction
England and Wales
Judgment Date
28 February 2017
Procedural Posture
Commercial Competition Claim (cartel Damages) / Jurisdictional Challenge and Application for Stay in Favour of Arbitration
Outcome
Proceedings against Sony Europe Limited and Sony Corporation stayed in favour of arbitration; service out set aside as against other Defendants; claims against foreign Defendants dismissed for want of jurisdiction.
Legal Topics
Cartel Damages, Jurisdiction (service Out of Jurisdiction), Arbitration Clauses, Forum Non Conveniens, Assignment of Claims, Joint and Several Liability, EU Law (article 101 Tfeu)
Competition Law Private International Law Civil Procedure Arbitration Cartel Damages Jurisdiction (service Out of Jurisdiction) Arbitration Clauses Forum Non Conveniens +3 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

Panasonic Corporation

Third Defendant

Sanyo Electric Co Limited

Fifth Defendant

Procedural Posture

Commercial Competition Claim (cartel Damages) / Jurisdictional Challenge and Application for Stay in Favour of Arbitration

Legal Issues

  1. 1 Whether the claims against the Defendants fall within the jurisdictional gateways for service out of the jurisdiction under CPR 6.36 and Practice Direction 6B
  2. 2 Whether the claims against Sony Europe Limited and Sony Corporation should be stayed in favour of arbitration under section 9 of the Arbitration Act 1996
  3. 3 Whether England and Wales is the proper forum for the trial of the claims

Ratio Decidendi

The claims against Sony Europe Limited and Sony Corporation are stayed under section 9 of the Arbitration Act 1996 due to the scope of the arbitration clause in the PPA. The claims against the other Defendants do not fall within the necessary or proper party or tort gateways for service out, as Microsoft Mobile failed to show a good arguable case that substantial damage was sustained within the jurisdiction by any assignor. The order for service out is set aside. Even if the gateways had been satisfied, England and Wales would not be clearly and distinctly the proper forum. There was also material non-disclosure on the application for service out.

Court Disposition

Proceedings against Sony Europe Limited and Sony Corporation stayed in favour of arbitration; service out set aside as against other Defendants; claims against foreign Defendants dismissed for want of jurisdiction.

Orders

  • Stay of proceedings against Sony Europe Limited and Sony Corporation under section 9 Arbitration Act 1996
  • Order for service out of jurisdiction set aside as against Sony Corporation, LG Chem Limited, Samsung SDI Co Limited