Originally published in BLG Marine, Energy and Trade
notes, January 2008
International contracts often provide for claims to be
resolved by London arbitration. There may, however, be
advantages to a claimant if the claim is brought in another
forum. In the case of cargo claims this is often before the
court where the cargo was discharged and where the claimant is
based.
It is a well established principle of English law that,
where a claim is brought in contravention of a London
arbitration clause, the defendant may obtain an English court
anti-suit injunction restraining the claimant from bringing or
maintaining proceedings elsewhere. If the claimant fails to
comply with the injunction it will be in contempt of court with
the consequence that its directors may be subject to
arrest/fine and/or assets sequestered. The claimant may also be
exposed to a claim for damages for breach of the arbitration