Nomihold Securities Inc v Mobile Telesystems Finance SA

Nomihold Securities Inc v Mobile Telesystems Finance SA

The court has jurisdiction to grant anti-arbitration injunctions under section 37 of the Senior Courts Act 1981, but the application for an injunction is not a matter to be referred to arbitration under section 9 of the Arbitration Act 1996. The facts do not justify the exceptional order sought, as the arbitral tribunals have adequate powers to determine issues of res judicata and estoppel, and the undertaking offered by MTSF sufficiently addresses concerns about enforcement. It is not just or convenient to grant the injunction.

Parties
Claimant: Nomihold Securities Inc; Defendant: Mobile Telesystems Finance SA
Jurisdiction
England and Wales
Judgment Date
02 February 2012
Procedural Posture
Commercial Arbitration Enforcement and Anti Arbitration Injunction / Ruling on Applications for Injunction and Stay
Outcome
Both applications dismissed; undertaking by MTSF accepted.
Legal Topics
Anti Arbitration Injunctions, Res Judicata, Issue Estoppel, Abuse of Process, Supervisory Jurisdiction, Stay of Proceedings, Enforcement of Arbitral Awards
Arbitration Contract Law Civil Procedure Anti Arbitration Injunctions Res Judicata Issue Estoppel Abuse of Process Supervisory Jurisdiction +2 more

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Parties

Nomihold Securities Inc

Claimant

Mobile Telesystems Finance SA

Defendant

Procedural Posture

Commercial Arbitration Enforcement and Anti Arbitration Injunction / Ruling on Applications for Injunction and Stay

Legal Issues

  1. 1 Whether the court has jurisdiction under section 37 of the Senior Courts Act 1981 to grant an anti-arbitration injunction
  2. 2 Whether the defendant is entitled to a stay under section 9 of the Arbitration Act 1996
  3. 3 Whether it is just and convenient to grant an anti-arbitration injunction restraining the defendant from pursuing new arbitrations

Ratio Decidendi

The court has jurisdiction to grant anti-arbitration injunctions under section 37 of the Senior Courts Act 1981, but the application for an injunction is not a matter to be referred to arbitration under section 9 of the Arbitration Act 1996. The facts do not justify the exceptional order sought, as the arbitral tribunals have adequate powers to determine issues of res judicata and estoppel, and the undertaking offered by MTSF sufficiently addresses concerns about enforcement. It is not just or convenient to grant the injunction.

Court Disposition

Both applications dismissed; undertaking by MTSF accepted.

Orders

  • MTSF undertakes not to advance in the new arbitrations any claim for a declaration that it is not obliged to carry out the award or not bound by LCIA rule 26.9, or a claim for an order releasing it from the obligation to pay the purchase price under the Option Agreement.
  • No injunction granted; applications for injunction and stay dismissed.