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ARTICLE · 19 MAY 2005

Should Security Be Available Outside England For GAFTA Arbitration? – The Trade Must Decide

A look at the exclusive jurisdiction clauses in GAFTA arbitration.

United KingdomTransport
Richard Black
Richard Black

The exclusive jurisdiction clauses in GAFTA arbitration have long been criticised for preventing a Claimant from obtaining ancillary relief outside of the English Court. Recently the Court of Appeal upheld the issue of an anti-suit injunction preventing a Claimant from gaining security in another country. Will this decision be applied restrictively, or will the trade issue a carte blanche restriction on all ancillary proceedings outside of the jurisdiction?

GAFTA ARBITRATION CONTRACT

The Domicile Clause in each GAFTA contract states:

"…except for the purpose of enforcing any award made in pursuance of the Arbitration Clause of this contract, the Courts of England shall have exclusive jurisdiction to determine any application for ancillary relief, the exercise of the powers of the Court in relation to the arbitration proceedings and any dispute other than a dispute which shall fall within the jurisdiction of the arbitrators or board of appeal of the Association pursuant to the

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