Argos Pereira Espana SL & Anor v Athenian Marine Ltd [2021] EWHC 554 (Comm) (10 March 2021)

Argos Pereira Espana SL & Anor v Athenian Marine Ltd [2021] EWHC 554 (Comm) (10 March 2021)

Equitable compensation is recoverable for breach of a derived rights obligation by an assignee or subrogated insurer who brings foreign proceedings in breach of an arbitration clause, including where such proceedings are brought against a closely related third party, and the principle of transferred loss applies to allow the carrier to recover legal costs incurred by that third party.

Citation
[2021] EWHC 554 (Comm)
Parties
Claimant: Argos Pereira España S. L.; Claimant: Generali España S. A.; Defendant: Athenian Marine Ltd
Jurisdiction
England and Wales
Judgment Date
10 March 2021
Procedural Posture
Arbitration Claim Under S 69 Arbitration Act 1996 (appeal on Point of Law) / Judgment on Appeal From Arbitral Award
Outcome
Appeal dismissed
Legal Topics
Equitable Compensation for Breach of Derived Rights Obligation, Transferred Loss Principle, Enforcement of Arbitration Clauses, Anti Suit Injunctions, Assignment and Subrogation in Shipping Contracts
Arbitration Commercial Law Equity Equitable Compensation for Breach of Derived Rights Obligation Transferred Loss Principle Enforcement of Arbitration Clauses Anti Suit Injunctions Assignment and Subrogation in Shipping Contracts

Case Brief

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Parties

Argos Pereira España S. L.

Claimant

Generali España S. A.

Claimant

Athenian Marine Ltd

Defendant

Procedural Posture

Arbitration Claim Under S 69 Arbitration Act 1996 (appeal on Point of Law) / Judgment on Appeal From Arbitral Award

Legal Issues

  1. 1 Whether equitable compensation is recoverable for breach of a derived rights obligation (DRO) by an assignee/subrogated insurer bringing foreign proceedings against a non-party in breach of an arbitration clause
  2. 2 Whether the principle of transferred loss allows the carrier to recover legal costs incurred by a third party (closely related company) as a result of such breach

Ratio Decidendi

Equitable compensation is recoverable for breach of a derived rights obligation by an assignee or subrogated insurer who brings foreign proceedings in breach of an arbitration clause, including where such proceedings are brought against a closely related third party, and the principle of transferred loss applies to allow the carrier to recover legal costs incurred by that third party.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed; the arbitral award in favour of the defendant stands.