Heiland Resources Ltd. Vs Sinopec International Petroleum Services Limited & 5 ors (H1/104/2022) [2022] GHACA 163 (28 July 2022)

Heiland Resources Ltd. Vs Sinopec International Petroleum Services Limited & 5 ors (H1/104/2022) [2022] GHACA 163 (28 July 2022)

The arbitration clause in the Lateral Line Contract does not extend to separate contracts entered into orally or by email, for which there was no written arbitration agreement. The Respondent's conduct in objecting to arbitration constituted a waiver of its right to arbitration. There was no consensus to arbitrate all disputes, and the High Court erred in referring the entire dispute to arbitration. The appeal is allowed and the matter is to proceed in court.

Citation
[2022] GHACA 163
Parties
Plaintiff/respondent/appellant: Heiland Resources Ltd.; 1st Defendant: Sinopec International Petroleum Services Limited; 2nd Defendant: Sinopec Jiangsu Oilfield Services; 3rd Defendant/applicant/respondent: Sinopec International Services Limited; 4th Defendant: Sinopec Group; 5th Defendant: Sinopec Service; 6th Defendant: Sinopec Limited
Court
Court of Appeal
Jurisdiction
Ghana
Judgment Date
28 July 2022
Case Number
H1/104/2022
Procedural Posture
Civil Appeal / Appeal From High Court Ruling on Stay of Proceedings and Referral to Arbitration
Outcome
Appeal allowed
Legal Topics
Arbitration Clauses, Jurisdiction, Waiver of Arbitration Rights, Party Autonomy, Fraud Allegations in Contract Disputes
Source Language
English
Contract Law Arbitration Civil Procedure Arbitration Clauses Jurisdiction Waiver of Arbitration Rights Party Autonomy Fraud Allegations in Contract Disputes

Case Brief

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Parties

Heiland Resources Ltd.

Plaintiff/respondent/appellant

Sinopec International Petroleum Services Limited

1st Defendant

Sinopec Jiangsu Oilfield Services

2nd Defendant

Sinopec International Services Limited

3rd Defendant/applicant/respondent

Sinopec Group

4th Defendant

Sinopec Service

5th Defendant

Sinopec Limited

6th Defendant

Procedural Posture

Civil Appeal / Appeal From High Court Ruling on Stay of Proceedings and Referral to Arbitration

Legal Issues

  1. 1 Whether disputes arising from separate contracts outside the Lateral Line Contract are subject to arbitration under the Lateral Line Contract's arbitration clause
  2. 2 Whether the doctrine of kompetenz-kompetenz applies in the absence of an arbitration agreement for the separate contracts
  3. 3 Whether the Respondent's conduct amounted to a waiver of the right to arbitration

Ratio Decidendi

The arbitration clause in the Lateral Line Contract does not extend to separate contracts entered into orally or by email, for which there was no written arbitration agreement. The Respondent's conduct in objecting to arbitration constituted a waiver of its right to arbitration. There was no consensus to arbitrate all disputes, and the High Court erred in referring the entire dispute to arbitration. The appeal is allowed and the matter is to proceed in court.

Court Disposition

Appeal allowed

Orders

  • The High Court's order referring the dispute to arbitration is set aside.
  • The parties are to continue with the action in the court below.