African Fertilizers and Chemicals Nig Ltd (Nigeria) v BD Shipsnavo GmbH & Co Reederei Kg [2011] EWHC 2452 (Comm) (29 September 2011)

African Fertilizers and Chemicals Nig Ltd (Nigeria) v BD Shipsnavo GmbH & Co Reederei Kg [2011] EWHC 2452 (Comm) (29 September 2011)

A purely declaratory arbitration award may be enforced under section 66 of the Arbitration Act 1996 if its terms are sufficiently clear and enforcement would provide a material benefit, such as establishing the primacy of the English judgment over an inconsistent foreign judgment. The distinction between recognition and enforcement does not preclude such enforcement, and a judgment entered in terms of the award can constitute a 'judgment' under Article 34(3) of the Brussels Regulation.

Citation
[2011] EWHC 2452 (Comm)
Parties
Applicant/defendant: African Fertilizers and Chemicals NIG Ltd (Nigeria); Respondent/claimant: BD Shipsnavo GmbH & Co Reederei KG
Jurisdiction
England and Wales
Judgment Date
29 September 2011
Procedural Posture
Commercial Court Application to Set Aside Enforcement Order / Judgment on Application to Set Aside Order Granting Leave to Enforce Arbitration Award
Outcome
Application to set aside the enforcement order dismissed.
Legal Topics
Enforcement of Arbitration Awards, Declaratory Relief, Jurisdiction Under Arbitration Act 1996, Recognition and Enforcement of Judgments, Brussels Regulation
Arbitration Commercial Law Conflict of Laws Enforcement of Arbitration Awards Declaratory Relief Jurisdiction Under Arbitration Act 1996 Recognition and Enforcement of Judgments Brussels Regulation

Case Brief

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Parties

African Fertilizers and Chemicals NIG Ltd (Nigeria)

Applicant/defendant

BD Shipsnavo GmbH & Co Reederei KG

Respondent/claimant

Procedural Posture

Commercial Court Application to Set Aside Enforcement Order / Judgment on Application to Set Aside Order Granting Leave to Enforce Arbitration Award

Legal Issues

  1. 1 Whether a purely declaratory arbitration award can be enforced under section 66 of the Arbitration Act 1996
  2. 2 Whether a judgment entered in terms of a declaratory award constitutes a 'judgment' under Article 34(3) of the Brussels Regulation

Ratio Decidendi

A purely declaratory arbitration award may be enforced under section 66 of the Arbitration Act 1996 if its terms are sufficiently clear and enforcement would provide a material benefit, such as establishing the primacy of the English judgment over an inconsistent foreign judgment. The distinction between recognition and enforcement does not preclude such enforcement, and a judgment entered in terms of the award can constitute a 'judgment' under Article 34(3) of the Brussels Regulation.

Court Disposition

Application to set aside the enforcement order dismissed.

Orders

  • Teare J's order granting leave to enforce the arbitration award and enter judgment in its terms stands.
  • Defendant's application to set aside the order is refused.