Fiona Trust & Holding Corporation & Ors v Yuri Privalov & Ors [2007] EWCA Civ 20 (24 January 2007)

Fiona Trust & Holding Corporation & Ors v Yuri Privalov & Ors [2007] EWCA Civ 20 (24 January 2007)

A claim for rescission of contract for bribery falls within the scope of the arbitration clause, which is separable and unimpeached by the bribery alleged against the main contract. The arbitration clause remains valid and covers disputes about rescission. Claims for rescission should be stayed under section 9(4) of the Arbitration Act 1996, and applications under section 72 should be dismissed.

Citation
[2007] EWCA Civ 20
Parties
Respondents/claimants: Fiona Trust & Holding Corporation & ors; Appellants/defendants: Yuri Privalov & ors
Jurisdiction
England and Wales
Judgment Date
24 January 2007
Procedural Posture
Appeal From High Court (commercial Court) / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Separability of Arbitration Clause, Scope of Arbitration Agreement, Rescission for Bribery, Stay of Proceedings, Jurisdiction Under Arbitration Act 1996
Arbitration Commercial Law Separability of Arbitration Clause Scope of Arbitration Agreement Rescission for Bribery Stay of Proceedings Jurisdiction Under Arbitration Act 1996

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 21 Party arguments 2
Sign in to unlock

Parties

Fiona Trust & Holding Corporation & ors

Respondents/claimants

Yuri Privalov & ors

Appellants/defendants

Procedural Posture

Appeal From High Court (commercial Court) / Court of Appeal Judgment

Legal Issues

  1. 1 Does a claim for rescission of contract for bribery fall within the scope of the arbitration clause?
  2. 2 Is the arbitration clause separable from the main contract and unimpeached by allegations of bribery?
  3. 3 Should claims for rescission be stayed under section 9 of the Arbitration Act 1996?

Ratio Decidendi

A claim for rescission of contract for bribery falls within the scope of the arbitration clause, which is separable and unimpeached by the bribery alleged against the main contract. The arbitration clause remains valid and covers disputes about rescission. Claims for rescission should be stayed under section 9(4) of the Arbitration Act 1996, and applications under section 72 should be dismissed.

Court Disposition

Appeal allowed

Orders

  • Paragraphs 8–10 of the judge's order set aside
  • Owners' claims for rescission of charterparties stayed pursuant to section 9(4) of the Arbitration Act 1996