China Export & Credit Insurance Corporation v Emerald Energy Resources Ltd

China Export & Credit Insurance Corporation v Emerald Energy Resources Ltd

The claim on the promissory note is governed by English law and subject to a non-exclusive jurisdiction clause. The arbitration clause in the Farm-In Agreements does not encompass the claim on the Note, and Emerald is contractually bound to submit to the jurisdiction of the English court. No binding compromise agreement was reached. There are no grounds for a stay under section 9 of the Arbitration Act 1996 or the court's inherent jurisdiction.

Parties
Claimant: China Export & Credit Insurance Corporation; Defendant: Emerald Energy Resources Limited
Jurisdiction
England and Wales
Judgment Date
22 June 2018
Procedural Posture
Commercial Claim / Jurisdiction Challenge and Stay Application
Outcome
Emerald's challenge to jurisdiction and applications for a stay are refused.
Legal Topics
Jurisdiction, Arbitration Agreements, Promissory Notes, Stay of Proceedings, Assignment of Debt
Commercial Law Arbitration Contract Law Jurisdiction Arbitration Agreements Promissory Notes Stay of Proceedings Assignment of Debt

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Parties

China Export & Credit Insurance Corporation

Claimant

Emerald Energy Resources Limited

Defendant

Procedural Posture

Commercial Claim / Jurisdiction Challenge and Stay Application

Legal Issues

  1. 1 Whether the English court has jurisdiction to determine the claim on the promissory note
  2. 2 Whether the claim is covered by an arbitration agreement and should be stayed under section 9 of the Arbitration Act 1996
  3. 3 Whether a binding compromise agreement extinguished liability under the promissory note

Ratio Decidendi

The claim on the promissory note is governed by English law and subject to a non-exclusive jurisdiction clause. The arbitration clause in the Farm-In Agreements does not encompass the claim on the Note, and Emerald is contractually bound to submit to the jurisdiction of the English court. No binding compromise agreement was reached. There are no grounds for a stay under section 9 of the Arbitration Act 1996 or the court's inherent jurisdiction.

Court Disposition

Emerald's challenge to jurisdiction and applications for a stay are refused.

Orders

  • The English court retains jurisdiction to determine the claim on the promissory note.
  • No stay of proceedings is granted under section 9 of the Arbitration Act 1996 or the court's inherent jurisdiction.