The Czech Republic v Diag Human SE & Anor (Rev1) [2024] EWHC 503 (Comm) (08 March 2024)

The Czech Republic v Diag Human SE & Anor (Rev1) [2024] EWHC 503 (Comm) (08 March 2024)

The court held that several of the Czech Republic's jurisdictional objections were barred by s.73 of the Arbitration Act 1996 because they were not raised in a timely manner during the arbitral proceedings. The court found that the substance of the objections had either been addressed by the tribunal or not properly preserved for challenge. The court emphasised that fairness and finality in arbitration require parties to raise jurisdictional objections promptly, and that the statutory framework does not permit relitigation of issues not properly raised.

Citation
[2024] EWHC 503 (Comm)
Parties
Claimant/applicant: The Czech Republic; Defendant/respondent: Diag Human SE; Defendant/respondent: Mr Josef Stava
Jurisdiction
England and Wales
Judgment Date
08 March 2024
Procedural Posture
Arbitration Challenge Under Arbitration Act 1996 / High Court Judgment on Preliminary Issues (ss.67, 68, 73)
Outcome
Jurisdictional objections under s.67 largely barred by s.73; certain challenges dismissed; procedural guidance given.
Legal Topics
Jurisdictional Objections, Fair and Equitable Treatment, BIT Arbitration, Section 67 Challenge, Section 68 Challenge, Section 73 Preclusion, Recognition and Enforcement of Arbitral Awards
Arbitration International Investment Law Commercial Law Jurisdictional Objections Fair and Equitable Treatment BIT Arbitration Section 67 Challenge Section 68 Challenge +2 more

Case Brief

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Parties

The Czech Republic

Claimant/applicant

Diag Human SE

Defendant/respondent

Mr Josef Stava

Defendant/respondent

Procedural Posture

Arbitration Challenge Under Arbitration Act 1996 / High Court Judgment on Preliminary Issues (ss.67, 68, 73)

Legal Issues

  1. 1 Whether the Czech Republic is barred under s.73 Arbitration Act 1996 from advancing certain jurisdictional challenges
  2. 2 Whether certain matters raised under s.67 are properly characterised as jurisdictional
  3. 3 The scope and application of s.68 challenge

Ratio Decidendi

The court held that several of the Czech Republic's jurisdictional objections were barred by s.73 of the Arbitration Act 1996 because they were not raised in a timely manner during the arbitral proceedings. The court found that the substance of the objections had either been addressed by the tribunal or not properly preserved for challenge. The court emphasised that fairness and finality in arbitration require parties to raise jurisdictional objections promptly, and that the statutory framework does not permit relitigation of issues not properly raised.

Court Disposition

Jurisdictional objections under s.67 largely barred by s.73; certain challenges dismissed; procedural guidance given.

Orders

  • Objections not raised in a timely manner are barred under s.73 Arbitration Act 1996.
  • The Czech Republic's challenges on certain grounds are dismissed.