Challenges to jurisdiction must be made as early as possible in cases involving exclusive jurisdiction agreements, the Court of Appeal has indicated.
The case, Apex v Global Torch [2017] EWCA Civ 315, was the latest stage in the long-running Re Fi Call Ltd litigation, an international fraud case arising from telecommunications developments in the Middle East. Although judgment had already been given on the litigation, Apex attempted to stay part of the judgment because it related to a share purchase agreement with an exclusive jurisdiction agreement limiting dispute resolution to the courts of Saudi Arabia.
Dismissing the appeal, the court held that Apex had waived its right to rely on the exclusive jurisdiction agreement by engaging in the litigation without raising a jurisdiction challenge earlier. Instead, it should have raised a challenge when it became aware Global Torch was relying on the share purchase agreement.
Michael Ryan, of 7KBW, who appeared for Global Torch, said: ‘The decision emphasises the need for jurisdiction challenges to be made as early as possible.’
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