HC Trading Malta Ltd v Tradeland Commodities SL [2016] EWHC 1279 (Comm) (02 June 2016)

HC Trading Malta Ltd v Tradeland Commodities SL [2016] EWHC 1279 (Comm) (02 June 2016)

It is wrong in principle for the court to grant declaratory relief as to the existence of an arbitration agreement in circumstances where the claimant asserts a binding arbitration agreement, has a claim to pursue, and is able to commence arbitration. The statutory scheme of the Arbitration Act 1996 provides the appropriate mechanism for resolving such disputes, and the court should not intervene outside that scheme.

Citation
[2016] EWHC 1279 (Comm)
Parties
Claimant: HC Trading Malta Ltd; Defendant: Tradeland Commodities S. L.
Jurisdiction
England and Wales
Judgment Date
02 June 2016
Procedural Posture
Commercial Court Claim for Declaratory Relief / Application to Set Aside Claim And/or Service Out of Jurisdiction
Outcome
Claim dismissed
Legal Topics
Declaratory Relief, Jurisdiction of English Courts, Arbitration Act 1996, Kompetenz Kompetenz, Discretion to Grant Declarations
Arbitration Civil Procedure Declaratory Relief Jurisdiction of English Courts Arbitration Act 1996 Kompetenz Kompetenz Discretion to Grant Declarations

Case Brief

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Parties

HC Trading Malta Ltd

Claimant

Tradeland Commodities S. L.

Defendant

Procedural Posture

Commercial Court Claim for Declaratory Relief / Application to Set Aside Claim And/or Service Out of Jurisdiction

Legal Issues

  1. 1 Whether the English court has jurisdiction or should exercise discretion to grant declaratory relief as to the existence of an arbitration agreement when arbitration is imminent but not commenced
  2. 2 Whether the Arbitration Act 1996 impliedly excludes the court's declaratory jurisdiction in such circumstances

Ratio Decidendi

It is wrong in principle for the court to grant declaratory relief as to the existence of an arbitration agreement in circumstances where the claimant asserts a binding arbitration agreement, has a claim to pursue, and is able to commence arbitration. The statutory scheme of the Arbitration Act 1996 provides the appropriate mechanism for resolving such disputes, and the court should not intervene outside that scheme.

Court Disposition

Claim dismissed

Orders

  • Claim for declaratory relief dismissed