CMA CGM SA v Hyundai Mipo Dockyard Co Ltd

CMA CGM SA v Hyundai Mipo Dockyard Co Ltd

Upon novation, CMA became bound by the arbitration clause in the shipbuilding contracts and was required to arbitrate the dispute, including discontinuing the French proceedings. The arbitrators were not bound by the French judgment, as the Judgments Regulation does not apply to arbitration tribunals, and the proper measure of damages is as if the arbitration agreement had been complied with.

Parties
Claimant: CMA CGM SA; Defendant: HYUNDAI MIPO DOCKYARD CO LTD
Jurisdiction
England and Wales
Judgment Date
14 November 2008
Procedural Posture
Arbitration Appeal / Judgment on Appeal Under S69 Arbitration Act 1996
Outcome
Appeal dismissed
Legal Topics
Novation, Arbitration Clauses, Recognition of Foreign Judgments, Breach of Contract, Public Policy Exception
Arbitration Contract Law Conflict of Laws Novation Arbitration Clauses Recognition of Foreign Judgments Breach of Contract Public Policy Exception

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Parties

CMA CGM SA

Claimant

HYUNDAI MIPO DOCKYARD CO LTD

Defendant

Procedural Posture

Arbitration Appeal / Judgment on Appeal Under S69 Arbitration Act 1996

Legal Issues

  1. 1 Whether the arbitration clause in the novated shipbuilding contracts applied to a pre-existing dispute already referred to the French court and pending at the time of novation
  2. 2 Whether the arbitrators were bound by the French court’s determination of the same issues between the same parties in a judgment which the English courts would be bound to recognise under the Judgments Regulation

Ratio Decidendi

Upon novation, CMA became bound by the arbitration clause in the shipbuilding contracts and was required to arbitrate the dispute, including discontinuing the French proceedings. The arbitrators were not bound by the French judgment, as the Judgments Regulation does not apply to arbitration tribunals, and the proper measure of damages is as if the arbitration agreement had been complied with.

Court Disposition

Appeal dismissed

Orders

  • CMA's appeal is dismissed; the arbitrators' awards stand unchanged.