West Tankers Inc v Allianz SpA & Anor

West Tankers Inc v Allianz SpA & Anor

Arbitration falls outside the scope of Regulation (EC) 44/2001; arbitral tribunals are not deprived by EU law of jurisdiction to award equitable damages for breach of obligation to arbitrate; principle of effective judicial protection does not bind arbitral tribunals in this context; tribunal erred in dismissing claim for damages and indemnity.

Parties
Claimant/appellant: West Tankers Inc; Defendant/respondent: Allianz SpA (formerly Riunione Adriatica Sicurta); Defendant/respondent: Generali Assicurazioni Generali SpA
Jurisdiction
England and Wales
Judgment Date
04 April 2012
Procedural Posture
Appeal From Arbitral Award / Judgment on Appeal
Outcome
Appeal allowed
Legal Topics
Jurisdiction of Arbitral Tribunals, Effectiveness of EU Law, Anti Suit Injunctions, Principle of Effective Judicial Protection, Subrogation, Damages for Breach of Arbitration Agreement

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Parties

West Tankers Inc

Claimant/appellant

Allianz SpA (formerly Riunione Adriatica Sicurta)

Defendant/respondent

Generali Assicurazioni Generali SpA

Defendant/respondent

Procedural Posture

Appeal From Arbitral Award / Judgment on Appeal

  1. 1 Whether arbitral tribunal is deprived of jurisdiction to award equitable damages for breach of obligation to arbitrate by reason of EU law
  2. 2 Whether principle of effective judicial protection under EU law binds arbitral tribunals
  3. 3 Whether award of damages or indemnity constitutes illegitimate interference with proceedings in Italian court

Ratio Decidendi

Arbitration falls outside the scope of Regulation (EC) 44/2001; arbitral tribunals are not deprived by EU law of jurisdiction to award equitable damages for breach of obligation to arbitrate; principle of effective judicial protection does not bind arbitral tribunals in this context; tribunal erred in dismissing claim for damages and indemnity.

Court Disposition

Appeal allowed

Orders

  • Tribunal not deprived of jurisdiction to award equitable damages for breach of obligation to arbitrate by reason of EU law
  • Form of Order and consequential matters to be determined after hearing counsel