HC Trading Malta Ltd v Tradeland Commodities SL

HC Trading Malta Ltd v Tradeland Commodities SL

It is wrong in principle for the court to grant declaratory relief regarding the existence of an arbitration agreement where the claimant intends to commence arbitration and is able to do so; the scheme and principles of the Arbitration Act 1996 require such issues to be determined by the arbitral tribunal, not the court.

Parties
Claimant: HC Trading Malta Ltd; Defendant: Tradeland Commodities S. L.
Jurisdiction
England and Wales
Judgment Date
02 June 2016
Procedural Posture
Commercial Claim for Declaratory Relief / Ruling on Defendant's Application to Set Aside Claim And/or Service Out of Jurisdiction
Outcome
Claim dismissed
Legal Topics
Declaratory Relief, Jurisdiction of Court, Arbitration Agreement, Kompetenz Kompetenz, Anti Suit Injunction
Arbitration Commercial Law Declaratory Relief Jurisdiction of Court Arbitration Agreement Kompetenz Kompetenz Anti Suit Injunction

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Parties

HC Trading Malta Ltd

Claimant

Tradeland Commodities S. L.

Defendant

Procedural Posture

Commercial Claim for Declaratory Relief / Ruling on Defendant's Application to Set Aside Claim And/or Service Out of Jurisdiction

Legal Issues

  1. 1 Whether the court has jurisdiction to grant declaratory relief regarding the existence of an arbitration agreement when arbitration is imminent
  2. 2 Whether it is wrong in principle or discretion to grant such relief

Ratio Decidendi

It is wrong in principle for the court to grant declaratory relief regarding the existence of an arbitration agreement where the claimant intends to commence arbitration and is able to do so; the scheme and principles of the Arbitration Act 1996 require such issues to be determined by the arbitral tribunal, not the court.

Court Disposition

Claim dismissed

Orders

  • Claim for declaratory relief dismissed
  • No need to decide subsidiary applications regarding service out of jurisdiction