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UNITED KINGDOM 126
Supreme Court, 20 September 2023
(Republic of Mozambique v. Privinvest Shipbuilding SAL (Holding))
UNITED KINGDOM 126
Mozambique had commenced an action against, among others, the respondents over allegations of corruption in relation to a transaction by which Mozambique had borrowed money to finance the purchase of equipment and services under supply contracts with the respondents. The Court denied the respondent’s application to stay proceedings based on the arbitration clause in the supply contracts, finding that Mozambique’s claims related to an alleged corrupt scheme involving the transaction as a whole, with the supply contracts being only one of its elements; hence, the claims did not have a sufficient connection with the supply contracts containing the arbitration clause.
The court discusses whether the dispute falls within the wording of the arbitration agreement; and whether claims in tort fall within the scope of the agreement.
The court discusses the meaning and effect of the referral of the resolution of disputes to arbitration, including: who can ask for referral and when, whether a party has waived its right to request arbitration, the defense that there was no contract at all; whether there was a condition precedent to the commencement of arbitration (e.g. mediation), stay of proceedings v. compelling arbitration, and national procedural specificities such as remand and removal (US), effect of class action. etc.