A v B [2010] EWHC 3302 (Comm) (16 December 2010)

A v B [2010] EWHC 3302 (Comm) (16 December 2010)

Security under section 70(7) of the Arbitration Act 1996 should not be ordered unless the applicant demonstrates that the challenge to the award will prejudice enforcement, and the threshold requirement that the challenge is flimsy or lacks substance has not been met in this case; there is no evidence that enforcement will be prejudiced.

Citation
[2010] EWHC 3302 (Comm)
Parties
Claimant (respondent in the Arbitrations): A; Defendant (claimant in the Arbitrations): B
Jurisdiction
England and Wales
Judgment Date
16 December 2010
Procedural Posture
Arbitration Claim (applications Under Arbitration Act 1996) / Application for Security Under Section 70(7) and Section 70(6) Pending Section 67 and 69 Challenges
Outcome
Application for security under section 70(7) dismissed.
Legal Topics
Security for Award Pending Challenge, Jurisdiction of Arbitral Tribunal, Enforcement of Arbitral Awards, Threshold for Security Under Arbitration Act 1996 S.70(7)
Arbitration Commercial Law Security for Award Pending Challenge Jurisdiction of Arbitral Tribunal Enforcement of Arbitral Awards Threshold for Security Under Arbitration Act 1996 S.70(7)

Case Brief

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Parties

A

Claimant (respondent in the Arbitrations)

B

Defendant (claimant in the Arbitrations)

Procedural Posture

Arbitration Claim (applications Under Arbitration Act 1996) / Application for Security Under Section 70(7) and Section 70(6) Pending Section 67 and 69 Challenges

Legal Issues

  1. 1 Whether security should be ordered under section 70(7) of the Arbitration Act 1996 pending a section 67 challenge to arbitral jurisdiction and a section 69 application for permission to appeal
  2. 2 Whether the challenge to jurisdiction is 'flimsy' or lacks substance so as to justify security
  3. 3 Whether enforcement of the award would be prejudiced by the pending challenge

Ratio Decidendi

Security under section 70(7) of the Arbitration Act 1996 should not be ordered unless the applicant demonstrates that the challenge to the award will prejudice enforcement, and the threshold requirement that the challenge is flimsy or lacks substance has not been met in this case; there is no evidence that enforcement will be prejudiced.

Court Disposition

Application for security under section 70(7) dismissed.

Orders

  • Application for security for sums awarded under section 70(7) dismissed.
  • Application for security for costs under section 70(6) previously granted in the amount of £55,000, set off against £14,000 costs awarded to A.