Emirates Trading Agency Llc v Prime Mineral Exports Private Ltd

Emirates Trading Agency Llc v Prime Mineral Exports Private Ltd

The obligation in clause 11.1 of the LTC to seek to resolve disputes by friendly discussions in good faith before arbitration is enforceable, and on the facts, the parties engaged in such discussions for a sufficient period; therefore, the condition precedent to arbitration was satisfied and the arbitral tribunal has jurisdiction.

Parties
Applicant/claimant: Emirates Trading Agency LLC; Respondent/defendant: Prime Mineral Exports Private Limited
Jurisdiction
England and Wales
Judgment Date
01 July 2014
Procedural Posture
Arbitration Jurisdiction Challenge / High Court Application Under Section 67 of the Arbitration Act 1996
Outcome
Application dismissed
Legal Topics
Enforceability of Dispute Resolution Clauses, Condition Precedent to Arbitration, Good Faith Negotiations, Interpretation of Multi Tiered Dispute Resolution Clauses
Arbitration Contract Law Enforceability of Dispute Resolution Clauses Condition Precedent to Arbitration Good Faith Negotiations Interpretation of Multi Tiered Dispute Resolution Clauses

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Parties

Emirates Trading Agency LLC

Applicant/claimant

Prime Mineral Exports Private Limited

Respondent/defendant

Procedural Posture

Arbitration Jurisdiction Challenge / High Court Application Under Section 67 of the Arbitration Act 1996

Legal Issues

  1. 1 Is the obligation to seek to resolve disputes by friendly discussions in clause 11.1 of the LTC enforceable?
  2. 2 Was the condition precedent to arbitration satisfied before the claim was referred to arbitration?

Ratio Decidendi

The obligation in clause 11.1 of the LTC to seek to resolve disputes by friendly discussions in good faith before arbitration is enforceable, and on the facts, the parties engaged in such discussions for a sufficient period; therefore, the condition precedent to arbitration was satisfied and the arbitral tribunal has jurisdiction.

Court Disposition

Application dismissed

Orders

  • ETA's application under section 67 of the Arbitration Act 1996 is dismissed.