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West Tankers v Allianz: court allows enforcement of declaratory arbitration award

Overview

In the well known case of Allianz SpA (formerly Riunione Adriatica Di Scurta SpA) and others v West Tankers Inc, (Case C-185/07), the Court of Justice of the European Union (ECJ) held that the use of an anti-suit injunction, to restrain a party from continuing with court proceedings in Italy in breach of an arbitration agreement, was inconsistent with EU legislation. This decision has provoked much criticism and led to proposals that the relevant EU legislation should be reformed.

That decision, however, was not the end of the matter for the parties concerned. The Italian proceedings and the arbitration both continued. On 12 November 2008, the arbitral tribunal issued a declaratory award in favour of West Tankers.

This briefing reports on the Commercial Court decision of West Tankers v Allianz SpA and another [2011] EWHC 829, in which Field J held that the arbitral tribunal’s declaratory award could be enforced under the Arbitration Act 1996. West Tankers’ purpose in making this application was to prevent any irreconcilable judgment of the Italian court from being enforceable in England. It remains to be seen whether West Tankers will achieve this aim.

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