French State v London Steam-Ship Owners' Mutual Insurance Association Ltd (Re Arbitration Act 1996 and an Arbitration) [2023] EWHC 2474 (Comm) (06 October 2023)

French State v London Steam-Ship Owners' Mutual Insurance Association Ltd (Re Arbitration Act 1996 and an Arbitration) [2023] EWHC 2474 (Comm) (06 October 2023)

The First Partial Award was an 'award' for the purposes of s. 69 Arbitration Act 1996, triggering the 28-day time limit for appeal. The French State's delay in appealing was not justified by concerns over state immunity, but in the interests of justice, an extension of time was granted for Grounds 1 and 2 (injunction and equitable compensation), but not for Grounds 3 and 4. Permission to appeal was granted on Grounds 1 and 2 only. On the merits, the tribunal did not have power to grant an injunction against the French State absent written consent under s. 13(2) State Immunity Act 1978, subject to a pending Court of Appeal decision on the effect of Benkharbouche. The question of equitable...

Citation
[2023] EWHC 2474 (Comm)
Parties
Claimant/respondent in the Arbitration: The French State; Defendant/claimant in the Arbitration: The London Steam-Ship Owners' Mutual Insurance Association Limited
Jurisdiction
England and Wales
Judgment Date
06 October 2023
Procedural Posture
Arbitration Claim Under Arbitration Act 1996, S. 69 (appeal on Point of Law) / High Court Judgment on Application for Extension of Time and Permission to Appeal, and Determination of Appeal
Outcome
Extension of time granted for Grounds 1 and 2; permission to appeal granted for Grounds 1 and 2; appeal on Ground 1 (injunction) allowed (subject to pending Court of Appeal decision); permission and extension refused for Grounds 3 and 4.
Legal Topics
State Immunity, Arbitral Awards, Anti Suit Injunctions, Equitable Compensation, Enforcement of Foreign Judgments
Arbitration Public International Law Civil Procedure State Immunity Arbitral Awards Anti Suit Injunctions Equitable Compensation Enforcement of Foreign Judgments

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Parties

The French State

Claimant/respondent in the Arbitration

The London Steam-Ship Owners' Mutual Insurance Association Limited

Defendant/claimant in the Arbitration

Procedural Posture

Arbitration Claim Under Arbitration Act 1996, S. 69 (appeal on Point of Law) / High Court Judgment on Application for Extension of Time and Permission to Appeal, and Determination of Appeal

Legal Issues

  1. 1 Whether the arbitral tribunal had power to grant an injunction against a foreign State under s. 48(5) Arbitration Act 1996
  2. 2 Whether the tribunal could award equitable compensation for breach of an equitable obligation to arbitrate
  3. 3 Whether an anti-enforcement injunction can restrain enforcement of a foreign judgment recognised under English law

Ratio Decidendi

The First Partial Award was an 'award' for the purposes of s. 69 Arbitration Act 1996, triggering the 28-day time limit for appeal. The French State's delay in appealing was not justified by concerns over state immunity, but in the interests of justice, an extension of time was granted for Grounds 1 and 2 (injunction and equitable compensation), but not for Grounds 3 and 4. Permission to appeal was granted on Grounds 1 and 2 only. On the merits, the tribunal did not have power to grant an injunction against the French State absent written consent under s. 13(2) State Immunity Act 1978, subject to a pending Court of Appeal decision on the effect of Benkharbouche. The question of equitable...

Court Disposition

Extension of time granted for Grounds 1 and 2; permission to appeal granted for Grounds 1 and 2; appeal on Ground 1 (injunction) allowed (subject to pending Court of Appeal decision); permission and extension refused for Grounds 3 and 4.

Orders

  • Extension of time for appeal granted for Grounds 1 and 2 only
  • Permission to appeal granted for Grounds 1 and 2 only