Doosan Babcock Ltd v Comercializadora De Equipos Y Materiales Mabe Limitada [2013] EWHC 3010 (TCC) (11 October 2013)

Doosan Babcock Ltd v Comercializadora De Equipos Y Materiales Mabe Limitada [2013] EWHC 3010 (TCC) (11 October 2013)

The Claimant has established a strong case that MABE's refusal to issue Taking-Over Certificates is a breach of contract, and that demands under the performance guarantees would be wrongful. The court has jurisdiction to grant interim relief under section 44(3) of the Arbitration Act 1996 to preserve the Claimant's contractual rights. Damages would not be an adequate remedy for the Claimant, and the balance of convenience favours granting interim relief.

Citation
[2013] EWHC 3010 (TCC)
Parties
Claimant: Doosan Babcock Limited; Defendant: Comercializadora de Equipos y Materiales Mabe Limitada
Jurisdiction
England and Wales
Judgment Date
11 October 2013
Procedural Posture
Arbitration Application for Interim Injunction / Interim Relief (without Notice)
Outcome
Interim injunction granted
Legal Topics
Interim Injunctions, Performance Guarantees, Taking Over Certificates, Service of Proceedings, Balance of Convenience
Arbitration Commercial Law Construction Law Interim Injunctions Performance Guarantees Taking Over Certificates Service of Proceedings Balance of Convenience

Case Brief

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Parties

Doosan Babcock Limited

Claimant

Comercializadora de Equipos y Materiales Mabe Limitada

Defendant

Procedural Posture

Arbitration Application for Interim Injunction / Interim Relief (without Notice)

Legal Issues

  1. 1 Whether MABE's refusal to issue Taking-Over Certificates constitutes a breach of contract
  2. 2 Whether the Claimant is entitled to interim relief restraining demands under performance guarantees
  3. 3 Whether service of proceedings on MABE's solicitors is valid

Ratio Decidendi

The Claimant has established a strong case that MABE's refusal to issue Taking-Over Certificates is a breach of contract, and that demands under the performance guarantees would be wrongful. The court has jurisdiction to grant interim relief under section 44(3) of the Arbitration Act 1996 to preserve the Claimant's contractual rights. Damages would not be an adequate remedy for the Claimant, and the balance of convenience favours granting interim relief.

Court Disposition

Interim injunction granted

Orders

  • Defendant restrained from making demands under performance guarantees pending return date
  • Proceedings to be served on CMS Cameron McKenna