Svenska Petroleum Exploration AB v Lithuania & Anor

Svenska Petroleum Exploration AB v Lithuania & Anor

The Government of Lithuania, by signing the Joint Venture Agreement with a rubric expressly acknowledging itself to be legally and contractually bound as if a signatory, agreed to submit disputes to arbitration under the ICC Rules as set out in Article 9. The waiver of sovereign immunity in Article 35.1, in context, did not amount to a submission to the jurisdiction of the English courts under section 2 of the State Immunity Act 1978. The Agreement was a commercial transaction, but the application to enforce the award was not a proceeding relating to the transaction under section 3. However, the application was a proceeding relating to arbitration under section 9, and the Government was...

Parties
Claimant/respondent: Svenska Petroleum Exploration AB; Respondent/appellant: Government of the Republic of Lithuania; Respondent/appellant: AB Geonafta
Jurisdiction
England and Wales
Judgment Date
13 November 2006
Procedural Posture
Civil Appeal (arbitration Enforcement) / Appeal From High Court (commercial Court) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Enforcement of Foreign Arbitral Awards, Waiver of Sovereign Immunity, Interpretation of Arbitration Agreements, Issue Estoppel, Jurisdiction Under State Immunity Act
Arbitration State Immunity Commercial Law Enforcement of Foreign Arbitral Awards Waiver of Sovereign Immunity Interpretation of Arbitration Agreements Issue Estoppel Jurisdiction Under State Immunity Act

Case Brief

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Parties

Svenska Petroleum Exploration AB

Claimant/respondent

Government of the Republic of Lithuania

Respondent/appellant

AB Geonafta

Respondent/appellant

Procedural Posture

Civil Appeal (arbitration Enforcement) / Appeal From High Court (commercial Court) to Court of Appeal

Legal Issues

  1. 1 Whether the Government of Lithuania agreed to submit disputes to ICC arbitration under the Joint Venture Agreement
  2. 2 Whether the waiver of sovereign immunity in the Agreement amounted to a submission to the jurisdiction of the English courts under section 2 of the State Immunity Act 1978
  3. 3 Whether the Agreement was a commercial transaction under section 3 of the State Immunity Act 1978

Ratio Decidendi

The Government of Lithuania, by signing the Joint Venture Agreement with a rubric expressly acknowledging itself to be legally and contractually bound as if a signatory, agreed to submit disputes to arbitration under the ICC Rules as set out in Article 9. The waiver of sovereign immunity in Article 35.1, in context, did not amount to a submission to the jurisdiction of the English courts under section 2 of the State Immunity Act 1978. The Agreement was a commercial transaction, but the application to enforce the award was not a proceeding relating to the transaction under section 3. However, the application was a proceeding relating to arbitration under section 9, and the Government was...

Court Disposition

Appeal dismissed

Orders

  • The appeal by the Government of Lithuania is dismissed.
  • The Government is not immune from proceedings to enforce the second arbitral award.