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UNITED KINGDOM 2026-1
High Court of Justice, King’s Bench Division, 13 November 2025, Case No: KB-2025-001929
(Orange Transgroup Ltd and IT Way Transgroup Clearance LLP v. Shein Distribution UK Limited)
UNITED KINGDOM 2026-1
The High Court granted Shein’s application to stay proceedings pending arbitration, and denied the claimants’ application for an injunction to stay that arbitration. As to the anti-arbitration injunction, the Court noted that UK courts will grant such injunctions only in exceptional circumstances, which did not obtain here as the arbitration was not vexatious, oppressive or unconscionable, nor did it infringe the claimants’ legal or equitable rights. As to the stay application, the Court found that it could not reach a decision on whether a valid contract and arbitration agreement existed between the parties based on the incomplete record before it, and concluded that these issues were best determined in arbitration.
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.
The court discusses the principle of competence-competence, including whether the parties “intended to have arbitrability decided by an arbitrator”, and the separability of the arbitration agreement from the main contract.