Svenska Petroleum Exploration AB v Lithuania & Anor

Svenska Petroleum Exploration AB v Lithuania & Anor

The State is estopped from denying it was a party to the arbitration agreement by virtue of the arbitral tribunal's interim award, which is now final and conclusive under Danish law. Section 9 of the State Immunity Act 1978 applies to enforcement proceedings for foreign arbitral awards. The State is not immune from these proceedings. Alternatively, on the facts and applying Lithuanian law, the State was a party to the arbitration agreement in Article 9 of the JVA.

Parties
Claimant: SRS Svenska Petroleum Exploration AB; First Defendant: Government of the Republic of Lithuania; Second Defendant: AB Geonafta
Jurisdiction
England and Wales
Judgment Date
04 November 2005
Procedural Posture
Commercial Arbitration Enforcement / Judgment on Application to Set Aside Enforcement of Foreign Arbitral Award
Outcome
Application to set aside enforcement of arbitral award dismissed; enforcement permitted.
Legal Topics
Enforcement of Foreign Arbitral Awards, State Immunity Act 1978, Interpretation of Arbitration Agreements, Issue Estoppel, Bilateral Investment Treaties
Arbitration State Immunity Commercial Law Enforcement of Foreign Arbitral Awards State Immunity Act 1978 Interpretation of Arbitration Agreements Issue Estoppel Bilateral Investment Treaties

Case Brief

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Parties

SRS Svenska Petroleum Exploration AB

Claimant

Government of the Republic of Lithuania

First Defendant

AB Geonafta

Second Defendant

Procedural Posture

Commercial Arbitration Enforcement / Judgment on Application to Set Aside Enforcement of Foreign Arbitral Award

Legal Issues

  1. 1 Whether the State Immunity Act 1978 bars enforcement of a foreign arbitral award against a foreign state
  2. 2 Whether the Government of Lithuania was a party to the arbitration agreement in the JVA
  3. 3 Whether issue estoppel arises from the arbitral tribunal's interim award on jurisdiction

Ratio Decidendi

The State is estopped from denying it was a party to the arbitration agreement by virtue of the arbitral tribunal's interim award, which is now final and conclusive under Danish law. Section 9 of the State Immunity Act 1978 applies to enforcement proceedings for foreign arbitral awards. The State is not immune from these proceedings. Alternatively, on the facts and applying Lithuanian law, the State was a party to the arbitration agreement in Article 9 of the JVA.

Court Disposition

Application to set aside enforcement of arbitral award dismissed; enforcement permitted.

Orders

  • The State's application to set aside the order granting permission to enforce the arbitral award is dismissed.
  • Permission to enforce the arbitral award in England is confirmed.