Beijing Jianlong Heavy Industry Group v Golden Ocean Group Ltd & Ors [2013] EWHC 1063 (Comm) (01 May 2013)

Beijing Jianlong Heavy Industry Group v Golden Ocean Group Ltd & Ors [2013] EWHC 1063 (Comm) (01 May 2013)

The arbitration agreements are not rendered unenforceable by the illegality of the guarantees because the policy underlying the Foster v Driscoll principle does not require the arbitration agreements to be struck down; the arbitration agreements are separable and their enforcement does not offend English public policy or international comity.

Citation
[2013] EWHC 1063 (Comm)
Parties
Claimant: Beijing Jianlong Heavy Industry Group; Defendant: Golden Ocean Group Limited; Defendant: Golden Zhejiang Inc; Defendant: Ship Finance International Limited; Defendant: SFL Bulk Holding Limited
Jurisdiction
England and Wales
Judgment Date
01 May 2013
Procedural Posture
Arbitration Claim Under Section 67 of the Arbitration Act 1996 / Judgment on Challenge to Tribunal Jurisdiction and Enforceability of Arbitration Agreements
Outcome
Applications dismissed; arbitration agreements upheld.
Legal Topics
Separability of Arbitration Agreements, Illegality in Contract, Public Policy and Foreign Illegality, Anti Suit Injunctions
Arbitration Contract Law Conflict of Laws Separability of Arbitration Agreements Illegality in Contract Public Policy and Foreign Illegality Anti Suit Injunctions

Case Brief

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Parties

Beijing Jianlong Heavy Industry Group

Claimant

Golden Ocean Group Limited

Defendant

Golden Zhejiang Inc

Defendant

Ship Finance International Limited

Defendant

SFL Bulk Holding Limited

Defendant

Procedural Posture

Arbitration Claim Under Section 67 of the Arbitration Act 1996 / Judgment on Challenge to Tribunal Jurisdiction and Enforceability of Arbitration Agreements

Legal Issues

  1. 1 Whether arbitration agreements are unenforceable due to being part of a scheme to perform illegal acts in China
  2. 2 Whether the public policy that renders the guarantees unenforceable also taints the arbitration agreements

Ratio Decidendi

The arbitration agreements are not rendered unenforceable by the illegality of the guarantees because the policy underlying the Foster v Driscoll principle does not require the arbitration agreements to be struck down; the arbitration agreements are separable and their enforcement does not offend English public policy or international comity.

Court Disposition

Applications dismissed; arbitration agreements upheld.

Orders

  • The applications challenging the jurisdiction of the arbitral tribunals are dismissed.
  • The anti-suit injunctions granted by the arbitral tribunals remain in force.