Law Debenture Trust Corporation Plc v Elektrim Finance BV & Ors

Law Debenture Trust Corporation Plc v Elektrim Finance BV & Ors

Clause 29.7 of the trust deed gives Law Debenture an exclusive contractual option to litigate disputes in English courts, overriding the arbitration clause; Law Debenture has not participated in arbitration and is entitled to seek relief under section 72 Arbitration Act 1996; the court, not the arbitral tribunal,...

Source-derived case information.

Parties
Claimant: The Law Debenture Trust Corporation PLC; First Defendant: Elektrim Finance B.V.; Second Defendant: Elektrim S.A.; Third Defendant: Concord Trust
Jurisdiction
England and Wales
Judgment Date
01 July 2005
Procedural Posture
Civil / Ruling on Preliminary Issue and Applications for Stay/injunction
Outcome
Application for stay rejected; Law Debenture entitled to litigate; injunction granted restraining guarantor from pursuing arbitration.
Legal Topics
Jurisdiction of Courts Vs Arbitral Tribunals, Interpretation of Arbitration Clauses, Stay of Proceedings, Section 72 Arbitration Act 1996
Arbitration Contract Law Jurisdiction of Courts Vs Arbitral Tribunals Interpretation of Arbitration Clauses Stay of Proceedings Section 72 Arbitration Act 1996

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Parties

The Law Debenture Trust Corporation PLC

Claimant

Elektrim Finance B.V.

First Defendant

Elektrim S.A.

Second Defendant

Concord Trust

Third Defendant

Procedural Posture

Civil / Ruling on Preliminary Issue and Applications for Stay/injunction

Legal Issues

  1. 1 Whether Law Debenture is entitled to litigate in English courts or must arbitrate under clause 29 of the trust deed
  2. 2 Whether the court or arbitral tribunal should determine jurisdiction
  3. 3 Whether Law Debenture is barred from section 72 application by participation in arbitration

Ratio Decidendi

Clause 29.7 of the trust deed gives Law Debenture an exclusive contractual option to litigate disputes in English courts, overriding the arbitration clause; Law Debenture has not participated in arbitration and is entitled to seek relief under section 72 Arbitration Act 1996; the court, not the arbitral tribunal, should determine jurisdiction.

Court Disposition

Application for stay rejected; Law Debenture entitled to litigate; injunction granted restraining guarantor from pursuing arbitration.

Orders

  • Law Debenture may maintain proceedings in English courts.
  • Arbitration proceedings by Elektrim defendants must be halted.