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An uncertain future?

02 October 2008
Issue: 7339 / Categories: Features , Procedure & practice
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Should the English anti-suit injunction expect another blow from the ECJ? Steven Friel reports

Imagine the following scenario. An English company (UK Co) has entered into a contract with a company (Euro Co) from a far-flung European country (eg Estonia, Bulgaria, Italy, Finland, Poland, or indeed any other of the 26 other member states). Wary of potentially having to litigate in an unfamiliar jurisdiction, UK Co insists upon an English arbitration clause in the contract. Euro Co agrees to this, and their contract duly provides for all disputes to be settled in arbitration before a sole arbitrator in London, applying English law and proceeding in the English language. So far, all fine.

Six months down the line, however, and the parties are in dispute. Euro Co considers that UK Co has breached the contract. Rather than commencing London arbitration, however, Euro Co commences an action in courts in Euro Co’s home jurisdiction.

In these circumstances, can an English court issue an anti-suit injunction restraining Euro Co from proceeding in its home jurisdiction in breach of the arbitration agreement? The advantages of this solution are obvious. Rather

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