Integral Petroleum SA v Melars Group Ltd [2015] EWHC 1893 (Comm) (03 July 2015)

Integral Petroleum SA v Melars Group Ltd [2015] EWHC 1893 (Comm) (03 July 2015)

The arbitration agreement covered disputes relating to the Swiss proceedings only insofar as they depended on the application of the settlement clause in the cancellation agreement, but not other disputes. The tribunal had jurisdiction over the dispute about breach of the settlement clause, but the error in the award regarding jurisdiction was inconsequential, as the arbitrator would have rejected Integral's claim on the merits. Relief under section 67 was refused.

Citation
[2015] EWHC 1893 (Comm)
Parties
Claimant: Integral Petroleum SA; Defendant: Melars Group Ltd
Jurisdiction
England and Wales
Judgment Date
03 July 2015
Procedural Posture
Section 67 Arbitration Act 1996 Application / Judgment on Application to Set Aside Arbitral Award
Outcome
Application refused
Legal Topics
Arbitration Agreement Scope, Jurisdiction of Arbitral Tribunal, Settlement Clauses, Contract Interpretation
Arbitration Commercial Law Arbitration Agreement Scope Jurisdiction of Arbitral Tribunal Settlement Clauses Contract Interpretation

Case Brief

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Parties

Integral Petroleum SA

Claimant

Melars Group Ltd

Defendant

Procedural Posture

Section 67 Arbitration Act 1996 Application / Judgment on Application to Set Aside Arbitral Award

Legal Issues

  1. 1 Whether the arbitral tribunal had jurisdiction over disputes relating to Swiss proceedings under the settlement clause of the cancellation agreement
  2. 2 Whether the arbitration agreement covered disputes arising from the cancellation agreement
  3. 3 Whether the arbitral award should be set aside under section 67 of the Arbitration Act 1996

Ratio Decidendi

The arbitration agreement covered disputes relating to the Swiss proceedings only insofar as they depended on the application of the settlement clause in the cancellation agreement, but not other disputes. The tribunal had jurisdiction over the dispute about breach of the settlement clause, but the error in the award regarding jurisdiction was inconsequential, as the arbitrator would have rejected Integral's claim on the merits. Relief under section 67 was refused.

Court Disposition

Application refused

Orders

  • Section 67 application to set aside arbitral award refused