SRS Middle East FZE v Chemie Tech DMCC (Rev 1) [2020] EWHC 2904 (Comm) (02 November 2020)

SRS Middle East FZE v Chemie Tech DMCC (Rev 1) [2020] EWHC 2904 (Comm) (02 November 2020)

The defendant's pursuit of the Sharjah Claim, in circumstances where it has not unconditionally consented to a stay or dismissal of those proceedings in favour of arbitration, constitutes a threatened breach of the arbitration agreement. There is no evidence that staying or discontinuing the Sharjah Claim would result in the loss of the provisional measures granted by the Sharjah Court, and even if it would, such loss would not constitute good reason to permit a breach of the arbitration agreement. The defendant is therefore to be restrained by interim anti-suit injunction from taking any further steps in the Sharjah Claim and is required to concede the Article 8 Application in the...

Citation
[2020] EWHC 2904 (Comm)
Parties
Claimant: SRS Middle East FZE; Defendant: Chemie Tech DMCC
Jurisdiction
England and Wales
Judgment Date
02 November 2020
Procedural Posture
Commercial Court Claim / Interim Application for Anti Suit Injunction
Outcome
Interim anti-suit injunction granted against the defendant.
Legal Topics
Anti Suit Injunctions, Arbitration Agreements, Interim Relief, Jurisdiction, Enforcement of Arbitration Agreements
Arbitration Commercial Law Civil Procedure Anti Suit Injunctions Arbitration Agreements Interim Relief Jurisdiction Enforcement of Arbitration Agreements

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Parties

SRS Middle East FZE

Claimant

Chemie Tech DMCC

Defendant

Procedural Posture

Commercial Court Claim / Interim Application for Anti Suit Injunction

Legal Issues

  1. 1 Whether the defendant's pursuit of proceedings in Sharjah, UAE, constitutes a breach or threatened breach of a binding arbitration agreement requiring disputes to be resolved by ICC arbitration in London.
  2. 2 Whether the defendant should be restrained by anti-suit injunction from pursuing the Sharjah proceedings, particularly where such proceedings may be required to preserve interim relief granted by the Sharjah courts.
  3. 3 Whether the need to preserve provisional measures in the UAE courts constitutes 'good reason' not to grant an anti-suit injunction.

Ratio Decidendi

The defendant's pursuit of the Sharjah Claim, in circumstances where it has not unconditionally consented to a stay or dismissal of those proceedings in favour of arbitration, constitutes a threatened breach of the arbitration agreement. There is no evidence that staying or discontinuing the Sharjah Claim would result in the loss of the provisional measures granted by the Sharjah Court, and even if it would, such loss would not constitute good reason to permit a breach of the arbitration agreement. The defendant is therefore to be restrained by interim anti-suit injunction from taking any further steps in the Sharjah Claim and is required to concede the Article 8 Application in the...

Court Disposition

Interim anti-suit injunction granted against the defendant.

Orders

  • The defendant is restrained from taking any further steps in the Sharjah Claim pending trial or further order.
  • The defendant is required to concede the Article 8 Application in the Sharjah Court without qualification.