Beijing Jianlong Heavy Industry Group v Golden Ocean Group Ltd & Ors

Beijing Jianlong Heavy Industry Group v Golden Ocean Group Ltd & Ors

The arbitration agreements are not rendered unenforceable by the illegality of the guarantees under the Foster v Driscoll principle. The policy and purpose of the rule which invalidates the guarantees does not strike down the arbitration provisions. The arbitration agreements are separable and not directly impeached; enforcing them does not offend public policy or the principle of comity.

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 Applications Challenging Tribunal Jurisdiction and Enforceability of Arbitration Agreements
Outcome
Applications dismissed
Legal Topics
Separability of Arbitration Agreements, Illegality in Contract, Public Policy and Foreign Illegality, Anti Suit Injunctions
Arbitration Conflict of Laws Contract Law 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 Applications Challenging Tribunal Jurisdiction and Enforceability of Arbitration Agreements

Legal Issues

  1. 1 Whether arbitration agreements are unenforceable as part of a scheme to perform illegal acts in a foreign country under Foster v Driscoll
  2. 2 Whether the public policy that invalidates the guarantees also taints the arbitration agreements

Ratio Decidendi

The arbitration agreements are not rendered unenforceable by the illegality of the guarantees under the Foster v Driscoll principle. The policy and purpose of the rule which invalidates the guarantees does not strike down the arbitration provisions. The arbitration agreements are separable and not directly impeached; enforcing them does not offend public policy or the principle of comity.

Court Disposition

Applications dismissed

Orders

  • The applications challenging the enforceability of the arbitration agreements are dismissed.