Soprim Construction SARL v Republic of Djibouti [2016] EWHC 3864 (Comm) (18 May 2016)

Soprim Construction SARL v Republic of Djibouti [2016] EWHC 3864 (Comm) (18 May 2016)

Article 1.2.5(a) of the Addendum does not extinguish Soprim's right as a third party to enforce Article 12.1.3 of the Concession Agreement under the Contracts (Rights of Third Parties) Act 1999; the clause should not be interpreted as removing previously conferred third party rights without clear and unequivocal language to that effect.

Citation
[2016] EWHC 3864 (Comm)
Parties
Claimant/respondent: Soprim Construction SARL; Defendant/appellant: Republic of Djibouti
Jurisdiction
England and Wales
Judgment Date
18 May 2016
Procedural Posture
Section 67 Arbitration Act 1996 Challenge to Interim Arbitration Award / Judgment on Jurisdictional Challenge
Outcome
Application allowed; jurisdiction upheld
Legal Topics
Third Party Rights, Interpretation of Contracts, Arbitration Jurisdiction, Privity of Contract
Arbitration Contract Law Commercial Law Third Party Rights Interpretation of Contracts Arbitration Jurisdiction Privity of Contract

Case Brief

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Parties

Soprim Construction SARL

Claimant/respondent

Republic of Djibouti

Defendant/appellant

Procedural Posture

Section 67 Arbitration Act 1996 Challenge to Interim Arbitration Award / Judgment on Jurisdictional Challenge

Legal Issues

  1. 1 Whether Article 1.2.5(a) of the Addendum to the Concession Agreement extinguished Soprim's right as a third party to enforce Article 12.1.3 under the Contracts (Rights of Third Parties) Act 1999
  2. 2 Proper construction of Article 1.2.5(a) in context of the Addendum and Concession Agreement

Ratio Decidendi

Article 1.2.5(a) of the Addendum does not extinguish Soprim's right as a third party to enforce Article 12.1.3 of the Concession Agreement under the Contracts (Rights of Third Parties) Act 1999; the clause should not be interpreted as removing previously conferred third party rights without clear and unequivocal language to that effect.

Court Disposition

Application allowed; jurisdiction upheld

Orders

  • The Addendum did not extinguish Soprim's right to enforce Article 12.1.3; arbitrator has substantive jurisdiction over the dispute.