Arbitration Archives - EURO LIT INSIGHTS

English High Court Unravels National Iranian Oil Company’s Attempt to Shield £100M London Property from Enforcement of Arbitral Award

by Michael Darowski, Campbell Herbert and Jannika Glendon | Apr 23, 2024 | Arbitration, Court Judgment, Oil & Gas, United Kingdom

The English High Court has ordered the National Iranian Oil Company (NIOC) to transfer a high-value London property to Crescent Gas Corporation Limited (CGC) in satisfaction of a US$2.4 billion arbitral award in favour of CGC against NIOC. The Court found that NIOC’s eleventh-hour transfer of the property to its closely linked Iranian pension fund (the Fund) was a ploy to shield it from enforcement action by CGC.

The judgment, which is the most recent development in the ongoing, long-running dispute between CGC and NIOC, is likely to be of interest to practitioners and clients seeking to enforce arbitral awards in England, as well as those establishing or litigating trusts of land in England and Wales

McDermott acted for CGC in the proceedings, as well as the underlying arbitration and award challenge proceedings described below.

Background

In 2009, CGC, a subsidiary of UAE-based Crescent Petroleum, commenced arbitration seated in London against NIOC for breach of a 2001 long-term gas supply agreement. In September 2021, the tribunal rendered a Partial Award on Remedies in favour of CGC in which it ordered NIOC to pay more than US$2.4 billion in damages plus interest.

Having successfully defended two challenges to the award, brought

A Tale of Two Contracts: Reinsurance Dispute Ends in a New York State of Mind

by Campbell Herbert | Apr 22, 2024 | Arbitration, Procedural Legal Update, United Kingdom

In a battle of conflicting contracts, Tyson found itself on the losing end of a reinsurance dispute with Partner Re when the English Court of Appeal ruled [1] that a reinsurance contract on a Market Uniform Reinsurance Agreement (MURA) form superseded a prior contract on a Market Reform Contract (MRC) form, giving effect to the New York arbitration clause in the MURA.

The Duelling Documents

The saga began when Tyson International Company Limited (Tyson), captive insurer of poultry-giant Tyson Foods and the reinsured, and Partner Reinsurance Europe SE (Partner Re), a reinsurer, entered into a reinsurance contract on the MRC form, governed by English law and with an exclusive jurisdiction provision in favour of the English court. However, eight days later, at Tyson’s request, Partner Re issued another reinsurance contract on the MURA form, governed by New York law and containing a dispute resolution clause providing for arbitration in New York.

Flames and Feathers Fly

Following a fire at a poultry rendering facility in Alabama, Tyson sought to claim under the reinsurance. Partner Re purported to avoid the contract, citing misrepresentations in relation to the value of the insured properties. A dispute arose.

Tyson commenced proceedings in England,

Inadmissibility of a Judicial Annulment of an Arbitral Award After Unconditional Payment

by Tobias Meyer and Matthias Distler | Apr 22, 2024 | Arbitration

In a recent decision, the German Federal Court of Justice considered whether a party convicted in the course of arbitral proceedings can demand the annulment of an arbitral award by a state court if the same party has in the meantime already unconditionally fulfilled the obligation pronounced by the arbitral tribunal.

In this decision, the Federal Court commented for the first time on the extremely practical question of whether the right to apply for the annulment of arbitration awards by state courts requires the applicant to have grievance.

New Reform Makes Italy Even More Attractive for Arbitration

by Fabio Cozzi, Francesco Bianchi, Stefano Mechelli and Massimiliano Moruzzi | Feb 9, 2024 | Arbitration, Procedural Legal Update, Italy

A significant and extensive reform of the Italian Code of Civil Procedure (ICCP) was recently enacted by the Italian Government. Legislative Decree No. 149/2022 (the Reform), became applicable as of February 28, 2023.

The Reform introduced material changes to the rules governing proceedings before State Courts, with the aim of increasing efficiency and cutting the time required to decide a case. Extremely relevant changes also impacted arbitration, making Italy an even more arbitration-friendly jurisdiction. Below the most significant features.

Reinforced Impartiality and Independence of Arbitrators

With a view to aligning Italian arbitration law with the practice of the main international arbitration institutions, the amendments impose on each arbitrator a duty to disclose, at the time of acceptance of their appointment, the existence or absence of any circumstances that could lead to a challenge pursuant to the relevant Italian law provision (Article 815, para. 1, ICCP).

Without this declaration, the arbitrator’s acceptance will be considered null and void.

Moreover, article 815 of the ICCP provides a list of grounds for challenging an arbitrator. Until now, such grounds were specific and mostly related to the arbitrator’s relationship with the parties. With a view to strengthening the guarantees of impartiality and independence of

Deutsche Bank Anti-Suit Injunction

by Romilly Holland and Sadaat Cheema | Oct 21, 2023 | Arbitration, Court Judgment, Banking & Finance, United Kingdom

The recent decision of the Court of Appeal (the Court) in Deutsche Bank v Ruschemalliance LLC [2023] EWCA Civ 1144 (Deutsche Bank) confirms the strong interest in favour of granting anti-suit relief to hold parties to their arbitration agreements, even where the seat of arbitration is in a jurisdiction that does not itself provide for anti-suit injunctions (ASIs). In this case, anti-suit relief against proceedings issued in Russia was granted in circumstances where the relevant contract contained an agreement to arbitrate disputes in Paris. The Court considered that England was the proper forum for the anti-suit application, and that an anti-suit injunction was appropriate, because French courts do not grant ASIs.

The case is timely as it comes against the backdrop of a number of disputes about forum and choice of law in the wake of the Russian invasion of Ukraine. Agreements have increasingly broken down following implementation of US and European sanctions. There have been a number of consequential disputes over where to litigate – in Russia (as the Russian entity may prefer) or according to the contract’s specified forum. Paris is one of the most popular ‘neutral’ forums for dispute resolution, including in contracts with Russian counterparties. However, if