Anti-Suit
R.I.P. Anti Suit Arbitration Injunctions in EC
ERG, an Italian company, recovered compensation from its insurers, Allianz and Generali, in respect of the collision in Italy of a vessel chartered from and owned by West Tankers which damaged ERG's jetty. The insurers sued West Tankers in Italy to recover monies it had paid to ERG. At the same time, West Tankers brought proceedings in UK against insurers to have their dispute referred to arbitration in accordance with the Charterparty Agreement. West Tankers also sought an anti suit injunction to prevent the insurers continuing their claim in Italy in breach of the arbitration provisions in the Charterparty Agreement. Ultimately the case went to the House of Lords who referred to the ECJ the question of whether an anti suit injunction could be brought to prevent the continuation of proceedings commenced in a Member State. The ECJ found that a court of a member state could not make an order to restrain someone from bringing civil proceedings in another member state even if it is in breach of an arbitration agreement.
To view the judgment from the bailii website, please click on the link below.
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