Public Policy And The Enforcement Of Arbitral Awards

In Anatolie Stati and others v Kazakhstan [2017] EWHC 1348 (Comm), the English High Court held that the Defendant's application, to set aside permission granted to the Claimants to enforce an arbitral award, should proceed to trial as there was sufficient evidence the tribunal had been deliberately misled by the Claimants.

Background

The High Court's 6 June 2017 judgment related to a December 2013 (New York Convention) arbitral award arising out of Energy Charter Treaty arbitral proceedings seated in Sweden. Pursuant to the award, the Defendant was ordered to pay damages in excess of US$500 million. The Defendant subsequently applied to the English High Court to set aside permission granted to the Claimants to enforce the award, on the basis that enforcement of the award would contravene English public policy due to the Claimants' fraud. In particular, it was alleged that the value of a bid (for a liquefied petroleum gas plant), on which the tribunal based