Loon Energy Inc & Anor v Integra Mining & Ors [2007] EWHC 1876 (Comm) (31 July 2007)

Loon Energy Inc & Anor v Integra Mining & Ors [2007] EWHC 1876 (Comm) (31 July 2007)

The English court has no jurisdiction to grant declarations determining the continued efficacy or supersession of the Confidentiality Agreement, as such matters fall within the exclusive jurisdiction of the Texas arbitration under the broad arbitration clause. The English law agreements comprehensively terminated or released any rights of Integra/Bumico in Block L under those agreements, and the court grants declarations to that effect. Any further claims by Integra/Bumico under the Confidentiality Agreement must be pursued in the Texas arbitration, and the court stays any proceedings in respect of such matters under section 9 of the Arbitration Act 1996.

Citation
[2007] EWHC 1876 (Comm)
Parties
Claimant: Loon Energy Inc; Claimant: Loon Brunei Limited; Defendant: Integra Mining (B) Sendirian Berhad; Defendant: Bumico Sendirian Berhad
Jurisdiction
England and Wales
Judgment Date
31 July 2007
Procedural Posture
Commercial Court Claim for Declaratory Relief / Judgment After Expedited Trial
Outcome
Declarations granted as to termination of rights under English law agreements; stay granted in respect of matters relating to the Confidentiality Agreement; no jurisdiction to grant declarations affecting the Confidentiality Agreement.
Legal Topics
Declaratory Relief, Arbitration Stay, Supersession of Contracts, Trusts in Commercial Agreements, Jurisdiction Clauses
Contract Law Arbitration Oil and Gas Law Declaratory Relief Arbitration Stay Supersession of Contracts Trusts in Commercial Agreements Jurisdiction Clauses

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Parties

Loon Energy Inc

Claimant

Loon Brunei Limited

Claimant

Integra Mining (B) Sendirian Berhad

Defendant

Bumico Sendirian Berhad

Defendant

Procedural Posture

Commercial Court Claim for Declaratory Relief / Judgment After Expedited Trial

Legal Issues

  1. 1 Whether Integra/Bumico have any actual or contingent interest in Block L under the English law agreements
  2. 2 Whether the English court has jurisdiction to grant declarations affecting rights under the Confidentiality Agreement subject to Texas law and arbitration
  3. 3 Whether the Confidentiality Agreement has been superseded by subsequent English law agreements

Ratio Decidendi

The English court has no jurisdiction to grant declarations determining the continued efficacy or supersession of the Confidentiality Agreement, as such matters fall within the exclusive jurisdiction of the Texas arbitration under the broad arbitration clause. The English law agreements comprehensively terminated or released any rights of Integra/Bumico in Block L under those agreements, and the court grants declarations to that effect. Any further claims by Integra/Bumico under the Confidentiality Agreement must be pursued in the Texas arbitration, and the court stays any proceedings in respect of such matters under section 9 of the Arbitration Act 1996.

Court Disposition

Declarations granted as to termination of rights under English law agreements; stay granted in respect of matters relating to the Confidentiality Agreement; no jurisdiction to grant declarations affecting the Confidentiality Agreement.

Orders

  • Declaration that Integra/Bumico have no actual or contingent interest in Block L under the English law agreements, save for the right to payment under clause 5.2 of the Trust Agreement.
  • Declaration that Integra/Bumico are precluded from asserting any interest in Block L under the English law agreements.