PT Thiess Contractors Indonesia v PT Kaltim Prima Coal & Anor [2011] EWHC 1842 (Comm) (14 July 2011)

PT Thiess Contractors Indonesia v PT Kaltim Prima Coal & Anor [2011] EWHC 1842 (Comm) (14 July 2011)

The dispute in the English proceedings arises under the CDA, which contains a non-exclusive English jurisdiction clause and is distinct from the underlying dispute under the OAMS, which is subject to arbitration. The parties did not agree to refer disputes under the CDA to arbitration. Therefore, the mandatory stay under s.9 Arbitration Act 1996 does not apply, nor is a stay justified under the court's inherent jurisdiction.

Citation
[2011] EWHC 1842 (Comm)
Parties
Claimant: PT Thiess Contractors Indonesia; First Defendant: PT Kaltim Prima Coal; Second Defendant: Standard Chartered Bank, Singapore Branch
Jurisdiction
England and Wales
Judgment Date
14 July 2011
Procedural Posture
Commercial Court Application for Stay of Proceedings / Application for Stay Pending Arbitration
Outcome
Application for stay refused
Legal Topics
Stay of Proceedings, Arbitration Agreements, Jurisdiction Clauses, Security Pending Arbitration, Interpretation of Multi Contract Dispute Resolution Clauses
Commercial Law Arbitration Contract Law Stay of Proceedings Arbitration Agreements Jurisdiction Clauses Security Pending Arbitration Interpretation of Multi Contract Dispute Resolution Clauses

Case Brief

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Parties

PT Thiess Contractors Indonesia

Claimant

PT Kaltim Prima Coal

First Defendant

Standard Chartered Bank, Singapore Branch

Second Defendant

Procedural Posture

Commercial Court Application for Stay of Proceedings / Application for Stay Pending Arbitration

Legal Issues

  1. 1 Whether the English court proceedings should be stayed under s.9 Arbitration Act 1996 in favour of arbitration under the OAMS
  2. 2 Whether the dispute under the Cash Distribution Agreement (CDA) falls within the arbitration agreement in the OAMS or is subject to the jurisdiction of the English courts
  3. 3 Whether the court should exercise its inherent jurisdiction to stay the proceedings

Ratio Decidendi

The dispute in the English proceedings arises under the CDA, which contains a non-exclusive English jurisdiction clause and is distinct from the underlying dispute under the OAMS, which is subject to arbitration. The parties did not agree to refer disputes under the CDA to arbitration. Therefore, the mandatory stay under s.9 Arbitration Act 1996 does not apply, nor is a stay justified under the court's inherent jurisdiction.

Court Disposition

Application for stay refused

Orders

  • Proceedings in the English court to continue; no stay granted.