Claxton Engineering Services Ltd v TXM Olaj-Es Gazkutato KTF

Claxton Engineering Services Ltd v TXM Olaj-Es Gazkutato KTF

The English court has jurisdiction to grant an anti-arbitration injunction because arbitration proceedings are not covered by EU Regulation 44/2001, and the contract contains an exclusive English jurisdiction clause with no arbitration agreement. Exceptional circumstances exist as the defendant's pursuit of arbitration breaches the claimant's legal rights and would be vexatious and oppressive.

Parties
Applicant/claimant: Claxton Engineering Services Limited; Respondent/defendant: TXM Olaj-Es Gazkutato KTF
Jurisdiction
England and Wales
Judgment Date
01 February 2011
Procedural Posture
Commercial Claim / Application for Anti Arbitration Injunction
Outcome
injunction granted
Legal Topics
Exclusive Jurisdiction Clauses, Anti Arbitration Injunctions, Arbitration Agreements, EU Regulation 44/2001, New York Convention
Contract Law International Arbitration Civil Procedure Exclusive Jurisdiction Clauses Anti Arbitration Injunctions Arbitration Agreements EU Regulation 44/2001 New York Convention

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Parties

Claxton Engineering Services Limited

Applicant/claimant

TXM Olaj-Es Gazkutato KTF

Respondent/defendant

Procedural Posture

Commercial Claim / Application for Anti Arbitration Injunction

Legal Issues

  1. 1 Whether the English court has jurisdiction to grant an anti-arbitration injunction against proceedings in another EU Member State
  2. 2 Whether the contract between the parties contains an exclusive English jurisdiction clause or an arbitration agreement
  3. 3 Whether exceptional circumstances exist to justify an anti-arbitration injunction

Ratio Decidendi

The English court has jurisdiction to grant an anti-arbitration injunction because arbitration proceedings are not covered by EU Regulation 44/2001, and the contract contains an exclusive English jurisdiction clause with no arbitration agreement. Exceptional circumstances exist as the defendant's pursuit of arbitration breaches the claimant's legal rights and would be vexatious and oppressive.

Court Disposition

injunction granted

Orders

  • Defendant restrained from pursuing arbitration proceedings in Hungary under the HCCI rules in relation to the dispute.
  • If the defendant succeeds in its appeal, the injunction may be revisited.