Last week the House of Lords upheld a Court of Appeal decision that arbitration clauses could be enforced despite allegations of bribery in connection to the contracts.
Three charterers successfully fought for the right to enforce arbitration clauses against a number of ship owners in the Fiona Trust Group, even though the owners allege bribery was used by the charterers when entering into contracts in 2001.
The charterers were represented by shipping specialist Lax & Co, while Ince & Co advised the owners.
The ruling has been welcomed by City litigators as it brings clarity to case law surrounding the issue.
CMS Cameron McKenna disputes partner Guy Pendell commented: “The House of Lords has taken a refreshing approach by clarifying years of conflicting case law, showing the courts’ ongoing support for the arbitral process.”
The main case began in 2005 and involves dozens of parties. It centres around a dispute between Fiona Trust and a number of shipbrokers and other companies. It is estimated to value damages sought in the region of $600m-$700m (£292m-£341m).
A number of firms have played roles in the proceedings so far. Camerons is acting for one of the world’s largest ship brokers, Clarksons. Holman Fenwick & Willan, Clyde & Co and Howes Percival have also taken roles.