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Arbitration challenge: Too little too late

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08 March 2018 / Andreas Dracoulis , Andreas Dracoulis , Matthew Turner
Issue: 7784 / Categories: Features , Procedure & practice , Arbitration , ADR
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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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