Arbitration challenge: Too little too late

Valid arbitral awards can withstand untimely collateral attacks, as Andreas Dracoulis & Matthew Turner demonstrate

English law conflict rules will not readily permit a party to rely upon its local law to circumvent the consequences of an otherwise enforceable contract.

The Commercial Court decision in Exportadora de Sal S.A. de C.V. v Corretaje Maritimo Sud-Americano Inc [2018] EWHC 224 (Comm), [2018] All ER (D) 93 (Feb) is a salutary reminder of the need to act promptly in jurisdictional challenges and a welcome example of the English courts’ support of arbitration.

The proceedings arose out of an English law shipbuilding contract for the construction of a self-unloading salt barge (the SBC) concluded between Exportadora De Sal S.A. De C.V. (ESSA) and Corretaje Maritimo Sud-Americano Inc (CMSA). ESSA is a partially state owned Mexican salt mining corporation which, for the purposes of Mexican law, is treated as a state entity.

When ESSA failed to pay the second instalment CMSA terminated the contract and commenced LMAA arbitration proceedings claiming

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Arbitration challenge: Too little too late

Valid arbitral awards can withstand untimely collateral attacks, as Andreas Dracoulis & Matthew Turner demonstrate

English law conflict rules will not readily permit a party to rely upon its local law to circumvent the consequences of an otherwise enforceable contract.

When ESSA failed to pay the second instalment CMSA terminated the contract and commenced LMAA arbitration proceedings claiming

If you are not a subscriber, subscribe now to read this content

If you are already a subscriber sign in

...or Register for two weeks' free access to subscriber content

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Arbitration challenge: Too little too late

MOVERS & SHAKERS

Carey Olsen—Patrick Ormond

Dawson Cornwell—Naomi Angell

Penningtons Manches Cooper—Graham Green