European Film Bonds A/S & Ors v Lotus Holdings LLC & Ors

European Film Bonds A/S & Ors v Lotus Holdings LLC & Ors

The Substantive Issue is not within the scope of the arbitration agreements in the CGA or SA IPA. The agreements do not expressly or by necessary implication submit the scope issue or the deemed acceptance issue to arbitration. The arbitrator's determination of scope is not binding on the court, as the parties did not clearly and unmistakably agree to submit arbitrability to arbitration. Therefore, s.9 Arbitration Act 1996 does not apply and the court cannot stay the proceedings under that section. There are no exceptional circumstances justifying a stay under the inherent jurisdiction or case management powers.

Parties
Claimant/respondent: European Film Bonds A/S; Claimant/respondent: Allianz Global Corporate & Specialty SE; Claimant/respondent: ERGO Versicherung AG; Claimant/respondent: Kravag-Logistic Versicherungs-AG; Claimant/respondent: Basler Sachversicherungs AG; Claimant/respondent: AXA Versicherung AG; Claimant/respondent: Bayerischer Versicherungsverband Versicherungaktiengesellschaft; Claimant/respondent: SV Sparkassen-Versicherung Gebäudeversicherung AG; Defendant/applicant: Lotus Holdings LLC; Defendant/applicant: Lotus Media LLC; Defendant/applicant: Larkhark Films Limited; Defendant/applicant: Lip Sync Productions LLP
Jurisdiction
England and Wales
Judgment Date
31 July 2019
Procedural Posture
Commercial/arbitration Related Application / Ruling on Applications for Stay of Proceedings Under S.9 Arbitration Act 1996 and Inherent Jurisdiction
Outcome
Applications for stay of proceedings refused
Legal Topics
Scope of Arbitration Agreement, Stay of Proceedings, Competence Competence, Jurisdiction, Interpretation of Arbitration Clauses
Arbitration Conflict of Laws Contract Scope of Arbitration Agreement Stay of Proceedings Competence Competence Jurisdiction Interpretation of Arbitration Clauses

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Parties

European Film Bonds A/S

Claimant/respondent

Allianz Global Corporate & Specialty SE

Claimant/respondent

ERGO Versicherung AG

Claimant/respondent

Kravag-Logistic Versicherungs-AG

Claimant/respondent

Basler Sachversicherungs AG

Claimant/respondent

AXA Versicherung AG

Claimant/respondent

Bayerischer Versicherungsverband Versicherungaktiengesellschaft

Claimant/respondent

SV Sparkassen-Versicherung Gebäudeversicherung AG

Claimant/respondent

Lotus Holdings LLC

Defendant/applicant

Lotus Media LLC

Defendant/applicant

Larkhark Films Limited

Defendant/applicant

Lip Sync Productions LLP

Defendant/applicant

Procedural Posture

Commercial/arbitration Related Application / Ruling on Applications for Stay of Proceedings Under S.9 Arbitration Act 1996 and Inherent Jurisdiction

Legal Issues

  1. 1 Whether the Substantive Issue is within the scope of the arbitration agreements in the CGA and SA IPA
  2. 2 Whether the court should stay proceedings under s.9 Arbitration Act 1996 or its inherent jurisdiction
  3. 3 Whether the arbitrator's determination of scope is binding on the court

Ratio Decidendi

The Substantive Issue is not within the scope of the arbitration agreements in the CGA or SA IPA. The agreements do not expressly or by necessary implication submit the scope issue or the deemed acceptance issue to arbitration. The arbitrator's determination of scope is not binding on the court, as the parties did not clearly and unmistakably agree to submit arbitrability to arbitration. Therefore, s.9 Arbitration Act 1996 does not apply and the court cannot stay the proceedings under that section. There are no exceptional circumstances justifying a stay under the inherent jurisdiction or case management powers.

Court Disposition

Applications for stay of proceedings refused

Orders

  • Relief sought in all three Defendants’ applications is refused.
  • Proceedings will not be stayed under s.9 Arbitration Act 1996 or the inherent jurisdiction.