Commerzbank AG v RusChemAlliance LLC

Commerzbank AG v RusChemAlliance LLC

The English court has jurisdiction and is the proper forum to grant an anti-suit injunction restraining RusChem from pursuing Russian proceedings in breach of an English law governed arbitration agreement, even though the seat is Paris, as there are no exceptional circumstances and French law would not grant nor object to such relief.

Parties
Claimant: Commerzbank AG; Defendant: RusChemAlliance LLC
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Commercial Court Application / Interim Application for Anti Suit Injunction
Outcome
Interim anti-suit injunction granted; order for alternative service granted.
Legal Topics
Anti Suit Injunctions, Arbitration Agreements, Jurisdiction, Sanctions, Service of Process
Arbitration Contract Law International Commercial Law Anti Suit Injunctions Arbitration Agreements Jurisdiction Sanctions Service of Process

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Parties

Commerzbank AG

Claimant

RusChemAlliance LLC

Defendant

Procedural Posture

Commercial Court Application / Interim Application for Anti Suit Injunction

Legal Issues

  1. 1 Whether the English court has jurisdiction to grant an anti-suit injunction restraining foreign proceedings in breach of an arbitration agreement governed by English law but seated in Paris
  2. 2 Whether the seat of arbitration outside England constitutes exceptional circumstances against granting anti-suit relief
  3. 3 Whether promptness and absence of submission to foreign jurisdiction support the grant of relief

Ratio Decidendi

The English court has jurisdiction and is the proper forum to grant an anti-suit injunction restraining RusChem from pursuing Russian proceedings in breach of an English law governed arbitration agreement, even though the seat is Paris, as there are no exceptional circumstances and French law would not grant nor object to such relief.

Court Disposition

Interim anti-suit injunction granted; order for alternative service granted.

Orders

  • RusChemAlliance LLC restrained from pursuing proceedings in the Arbitrazh Court of St. Petersburg and Leningrad Oblast against Commerzbank AG in breach of the arbitration agreement in the Bond.
  • Permission granted to Commerzbank AG to serve the Arbitration Claim Form, Application, supporting evidence, and this Order on RusChemAlliance LLC via specified email addresses.