Ali Shipping Corporation v Shipyard Trogir [1997] EWCA Civ 3054 (19th December, 1997)

Ali Shipping Corporation v Shipyard Trogir [1997] EWCA Civ 3054 (19th December, 1997)

The implied obligation of confidentiality in arbitration attaches as a matter of law and prohibits disclosure of arbitration materials outside the original arbitration, subject to limited exceptions. Disclosure to related companies in subsequent arbitrations is not automatically permitted; the test is whether disclosure is reasonably necessary for the protection of legal rights. In this case, the Yard failed to establish that disclosure was reasonably necessary, as the requirements for issue estoppel were not met and the materials were not strictly relevant to the subsequent arbitrations. Injunctive relief was therefore appropriate, subject to exceptions if inconsistent evidence arises or...

Citation
[1997] EWCA Civ 3054
Parties
Plaintiff/appellant: Ali Shipping Corporation; Defendant/respondent: Shipyard Trogir
Jurisdiction
England and Wales
Procedural Posture
Appeal (civil) / Appeal From High Court Judgment Discharging Injunction; Court of Appeal Judgment
Outcome
Appeal allowed; injunction made final with provisos
Legal Topics
Implied Obligation of Confidentiality in Arbitration, Exceptions to Confidentiality in Arbitration, Issue Estoppel, Piercing the Corporate Veil, Injunctive Relief, Use of Arbitration Materials in Subsequent Proceedings
Arbitration Commercial Law Confidentiality Implied Obligation of Confidentiality in Arbitration Exceptions to Confidentiality in Arbitration Issue Estoppel Piercing the Corporate Veil Injunctive Relief +1 more

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Parties

Ali Shipping Corporation

Plaintiff/appellant

Shipyard Trogir

Defendant/respondent

Procedural Posture

Appeal (civil) / Appeal From High Court Judgment Discharging Injunction; Court of Appeal Judgment

Legal Issues

  1. 1 Whether an implied obligation of confidentiality attaches to materials generated in arbitration proceedings as a matter of law or business efficacy
  2. 2 Whether disclosure of arbitration materials to related companies in subsequent arbitrations is a breach of confidentiality
  3. 3 What exceptions exist to the confidentiality rule in arbitration

Ratio Decidendi

The implied obligation of confidentiality in arbitration attaches as a matter of law and prohibits disclosure of arbitration materials outside the original arbitration, subject to limited exceptions. Disclosure to related companies in subsequent arbitrations is not automatically permitted; the test is whether disclosure is reasonably necessary for the protection of legal rights. In this case, the Yard failed to establish that disclosure was reasonably necessary, as the requirements for issue estoppel were not met and the materials were not strictly relevant to the subsequent arbitrations. Injunctive relief was therefore appropriate, subject to exceptions if inconsistent evidence arises or...

Court Disposition

Appeal allowed; injunction made final with provisos

Orders

  • Injunction restraining disclosure of arbitration materials made final, subject to exceptions for inconsistent evidence or applications to dismiss for want of prosecution
  • Precise wording of injunction and any provisos to be settled by further argument if not agreed