Party over: Victorian court refuses enforcement against non-party to arbitration

Introduction

In an important decision on the enforcement of foreign arbitral awards, the Victorian Court of Appeal has allowed an appeal by IMC Aviation Solutions Pty Ltd (formerly IMC Mining Solutions Pty Ltd) (IMC), and in so doing refused the enforcement of an arbitral award made against IMC on the ground that IMC was not a party to the arbitration agreement.  

The Court of Appeal's decision highlights:

• That Australian courts have power to revisit jurisdictional issues in full in enforcement proceedings.
• The importance of dealing with jurisdictional issues in arbitration before significant costs are incurred by running an arbitration that renders an unenforceable award.