Dell Emerging Markets (EMEA) Ltd & Ors v Systems Equipment Telecommunications Services SAL

Dell Emerging Markets (EMEA) Ltd & Ors v Systems Equipment Telecommunications Services SAL

The Lebanese proceedings are in substance contractual and brought in breach of the exclusive jurisdiction clause in the 2004 IDA, which is enforceable under English law; the Ralli Bros principle does not apply as performance does not involve illegality in Lebanon; the claimants have established a high degree of probability of breach of the jurisdiction clause.

Parties
Claimant: Dell Emerging Markets (EMEA) Limited; Claimant: Dell S. A.; Claimant: Dell Technologies Inc.; Claimant: Dell FZ-LLC; Defendant: Systems Equipment Telecommunications Services S.A.L.
Jurisdiction
England and Wales
Judgment Date
19 April 2018
Procedural Posture
Application for Interim Anti Suit Injunction / Judgment on Application
Outcome
application for interim anti-suit injunction granted
Legal Topics
Anti Suit Injunctions, Exclusive Jurisdiction Clauses, Termination of Distribution Agreements, Statutory Rights Under Foreign Law
Commercial Law Conflict of Laws Contract Law Anti Suit Injunctions Exclusive Jurisdiction Clauses Termination of Distribution Agreements Statutory Rights Under Foreign Law

Case Brief

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Parties

Dell Emerging Markets (EMEA) Limited

Claimant

Dell S. A.

Claimant

Dell Technologies Inc.

Claimant

Dell FZ-LLC

Claimant

Systems Equipment Telecommunications Services S.A.L.

Defendant

Procedural Posture

Application for Interim Anti Suit Injunction / Judgment on Application

Legal Issues

  1. 1 Whether the Lebanese proceedings breach the exclusive jurisdiction clause in the 2004 IDA
  2. 2 Whether the exclusive jurisdiction clause is unenforceable under the Ralli Bros principle
  3. 3 Whether the Lebanese statutory claim under Decree 34/67 is independent of contract or in substance contractual

Ratio Decidendi

The Lebanese proceedings are in substance contractual and brought in breach of the exclusive jurisdiction clause in the 2004 IDA, which is enforceable under English law; the Ralli Bros principle does not apply as performance does not involve illegality in Lebanon; the claimants have established a high degree of probability of breach of the jurisdiction clause.

Court Disposition

application for interim anti-suit injunction granted

Orders

  • SETS restrained from pursuing Lebanese proceedings against claimants
  • SETS restrained from commencing further proceedings in Lebanon against claimants until judgment is handed down