Consolidated Resources Armenia -v- Global Gold and Others [2015] JRC 233A (18 November 2015)

Consolidated Resources Armenia -v- Global Gold and Others [2015] JRC 233A (18 November 2015)

The Royal Court set aside the interim injunctions because the Jersey proceedings have been stayed in favour of arbitration in New York, and the parties expressly agreed to seek interim relief through the Emergency Measures of Protection rules of the American Arbitration Association. The Court, as a stranger to the New York arbitration, should not continue injunctions in support of foreign proceedings, especially where the plaintiff has not commenced arbitration. There is no balance of advantage in maintaining the injunctions, and to do so would risk interfering with the chosen curial law.

Citation
[2015] JRC 233A
Parties
Plaintiff: Consolidated Resources Armenia; Defendant: Global Gold; Defendant: Mr Krikorian; Defendant: Joint Venture Company
Jurisdiction
Jersey
Judgment Date
18 November 2015
Procedural Posture
Civil / Application to Set Aside Interim Injunctions Following Stay of Proceedings in Favour of Arbitration
Outcome
Interim injunctions set aside with effect from 30 days from the date of judgment.
Legal Topics
Interim Injunctions, Stay of Proceedings, Arbitration Agreements, Unfair Prejudice, Winding Up, Jurisdiction, Emergency Relief
Arbitration Company Law Injunctions Interim Injunctions Stay of Proceedings Arbitration Agreements Unfair Prejudice Winding Up +2 more

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Parties

Consolidated Resources Armenia

Plaintiff

Global Gold

Defendant

Mr Krikorian

Defendant

Joint Venture Company

Defendant

Procedural Posture

Civil / Application to Set Aside Interim Injunctions Following Stay of Proceedings in Favour of Arbitration

Legal Issues

  1. 1 Whether the interim injunctions should be set aside following a stay of Jersey proceedings in favour of arbitration in New York
  2. 2 Whether the Royal Court has jurisdiction to maintain interim injunctions in support of a foreign arbitration
  3. 3 Whether the plaintiff is entitled to maintain interim relief pending arbitration

Ratio Decidendi

The Royal Court set aside the interim injunctions because the Jersey proceedings have been stayed in favour of arbitration in New York, and the parties expressly agreed to seek interim relief through the Emergency Measures of Protection rules of the American Arbitration Association. The Court, as a stranger to the New York arbitration, should not continue injunctions in support of foreign proceedings, especially where the plaintiff has not commenced arbitration. There is no balance of advantage in maintaining the injunctions, and to do so would risk interfering with the chosen curial law.

Court Disposition

Interim injunctions set aside with effect from 30 days from the date of judgment.

Orders

  • Interim injunctions imposed on 10 March 2014 (as amended) are set aside effective 30 days from judgment to allow the plaintiff to seek emergency relief in New York arbitration if desired.