CMA CGM SA v Hyundai Mipo Dockyard Co Ltd – QBD (Com Ct) (Burton J) – 14 November 2008
Arbitration – Shipbuilding contracts containing London arbitration clause – Third party seeking to take over contracts from original buyers and requesting sellers’ consent to novation – Sellers initially refusing consent – Third party bringing proceedings in France against sellers in tort for unlawful refusal to consent – All parties subsequently agreeing to novate shipbuilding contracts – French court determining that sellers’ initial refusal of consent was unreasonable – Whether French proceedings constituted a breach of London arbitration clause in shipbuilding contracts as novated – Whether London arbitration tribunal bound by French judgment
The defendant (“HMD”) entered into four separate shipbuilding contracts with subsidiaries of ER Schiffahrt GmbH (“ERS”) for the building and sale of four container vessels to be built by HMD. Each shipbuilding contract provided, in Article XIII, that “If any dispute should arise in connection with the interpretation and fulfilment of this contract” it should be referred to London arbitration. Article XIV provided that rights were not assignable without the prior written consent of either party, such consent not to be unreasonably withheld or delayed.
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Michael Daiches, Barrister
Dec 24 2008
