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West Tankers' legacy

26 March 2009 / Jacqueline Chaplin , Patrick Boylan
Issue: 7362 / Categories: Features , Procedure & practice , Arbitration
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What options are left for parties faced with a breach of an arbitration agreement in Europe? ask Patrick Boylan & Jacqueline Chaplin

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Last month the European Court of Justice (ECJ) handed down its judgment in Allianz SpA, Generali Assicurazioni Generali SpA v West Tankers Inc C-185/07. The result was not surprising: anti-suit injunctions issued in aid of arbitration were held to be incompatible with the principles of mutual trust and jurisdictional comity espoused by reg 44/2001 (the Regulation).

In August 2000 a vessel owned by West Tankers and chartered to Erg, an Italian company, collided with and caused damage to a jetty owned by Erg. The charterparty was governed by English law and contained an agreement to arbitrate in London. Erg claimed for its uninsured losses against West Tankers in arbitration, and Erg's insurers began proceedings against West Tankers in the Italian courts to recover the sums paid to Erg. West Tankers then sought an anitsuit injunction from the English courts to restrain the insurers

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