Syska & Anor v Vivendi Universal S.A. & Ors

Syska & Anor v Vivendi Universal S.A. & Ors

Where insolvency proceedings are opened in one EU Member State and arbitration is pending in another, Article 15 of Regulation 1346/2000 applies, so the law of the state where the arbitration is pending governs the effect of insolvency on the arbitration. Thus, English law applies, and the arbitration agreement remains valid; the arbitrators did not exceed their jurisdiction.

Parties
Appellant: Jozef Syska; Appellant: Elektrim S. A. (In Bankruptcy); Respondent: Vivendi Universal S. A.; Respondent: Vivendi Telecom International S. A.; Respondent: Elektrim Telekomunikacja Sp z o.o.; Respondent: Carcom Warszawa Sp z o.o.
Jurisdiction
England and Wales
Judgment Date
09 July 2009
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
appeal dismissed
Legal Topics
Effect of Insolvency on Arbitration, Choice of Law in Cross Border Insolvency, Interpretation of EU Regulation 1346/2000, Jurisdiction of Arbitral Tribunals After Insolvency
Insolvency Law Arbitration Conflict of Laws European Union Law Effect of Insolvency on Arbitration Choice of Law in Cross Border Insolvency Interpretation of EU Regulation 1346/2000 Jurisdiction of Arbitral Tribunals After Insolvency

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Parties

Jozef Syska

Appellant

Elektrim S. A. (In Bankruptcy)

Appellant

Vivendi Universal S. A.

Respondent

Vivendi Telecom International S. A.

Respondent

Elektrim Telekomunikacja Sp z o.o.

Respondent

Carcom Warszawa Sp z o.o.

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the effect of insolvency proceedings on a pending arbitration is governed by the law of the state where insolvency is opened or where arbitration is pending under EU Regulation 1346/2000
  2. 2 Whether Article 15 of the Regulation applies to arbitration proceedings
  3. 3 Whether the annulment of the arbitration agreement under Polish law affects the jurisdiction of the arbitral tribunal in England

Ratio Decidendi

Where insolvency proceedings are opened in one EU Member State and arbitration is pending in another, Article 15 of Regulation 1346/2000 applies, so the law of the state where the arbitration is pending governs the effect of insolvency on the arbitration. Thus, English law applies, and the arbitration agreement remains valid; the arbitrators did not exceed their jurisdiction.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed; judgment of the High Court affirmed.