International Arbitration Agreements: Which Law Applies?

Introduction

In Enka Insaat Ve Sanayi AS ("Enka") v OOO Insurance Co Chubb ("Chubb Russia") (2020) UKSC 38, the UK Supreme Court ("SC") considered the applicable law of an arbitration agreement. The Judgment (9 October 2020) will be of particular relevance to arbitration agreements with an international dimension, where there are questions regarding the system of national law that governs an arbitration agreement distinct from the governing law applicable to the main contract.

The case

Enka was an engineering business contractor completing works at a Russian power plant insured by Chubb Russia. Following a fire at the plant, Chubb Russia brought a claim against Enka in Moscow, seeking damages under the terms of the construction contract ("the contract") governing the works.