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The ITA Board of Reporters have reported on the following court decisions.
Federico Godoy, Beretta Godoy, ITA Reporter for Argentina
The arbitration clause incorporated into an adhesion contract is enforceable as long as it is concluded between companies to resolve business disputes.
Arthur X. Dong, JunHe LLP, ITA Reporter for the PRC of China
Under the law of the People’s Republic of China (‘PRC’), a non-signatory to an arbitration agreement is usually not bound by the arbitration agreement, and, tortious claim may possibly fall out of the arbitration agreement too. However, in this case Beijing High People’s Court (‘Court’) reversed the lower-level court’s ruling by holding that a trade secret infringement claim against a non-signatory to the arbitration agreement shall be referred to HKIAC arbitration.
Arthur X. Dong, JunHe LLP, ITA Reporter for the PRC of China
Unlike some jurisdictions which prohibit third party funding (‘TPF’) for anti-champerty reason, the laws of the People’s Republic of China (‘PRC’) do not prohibit TPF in litigation and arbitration. Nonetheless, in this case, the respondent alleged the claimant’s disclosure of details of the arbitration to the claimant’s third-party funder violated the confidentiality requirement under the arbitration rules. The PRC court rejected this argument and gave detailed reasoning on TPF’s impact on confidentiality of arbitration seated in the PRC.
Ina Rautiainen & Anna-Maria Tamminen, Hannes Snellman Attorneys, ITA Reporters for Finland
The District Court of Helsinki evaluated the validity of an arbitral award as a whole and with regard to the value added tax (‘VAT’) on the legal costs that the arbitral tribunal had ordered one of the parties to pay. The arbitration proceedings related to a disagreement on the interpretation of a sales agreement.
The District Court found that it neither has jurisdiction over a dispute that has been the subject of arbitration, nor to examine the substantive legal correctness of an arbitral award. An annulment action at a district court cannot be used as a means of appeal in a situation where the party concerned is dissatisfied with the outcome of the arbitration. An arbitral award can only be null and void or set aside in situations provided for by law, which was not the case in this matter.
In conclusion, the District Court of Helsinki dismissed the annulment action, except with regard to the question pertaining to VAT. The Court of Appeal of Helsinki did not grant permission to appeal and, thus, the District Court’s decision stands.
Ina Rautiainen & Anna-Maria Tamminen, Hannes Snellman Attorneys, ITA Reporters for Finland
Any opposition to the enforcement of a foreign award must be made within the grounds provided under Section 48 of the Arbitration and Conciliation Act 1996. The public policy exception in Section 48 must be construed narrowly and only in exceptional cases, where a foreign award shocks the conscience of the court.Any opposition to the enforcement of a foreign award must be made within the grounds provided under Section 48 of the Arbitration and Conciliation Act 1996. The public policy exception in Section 48 must be construed narrowly and only in exceptional cases, where a foreign award shocks the conscience of the court.
Aditya Singh, White & Case LLP, ITA Reporter for India
An arbitration agreement is valid if it manifests the unambiguous intention of the parties to refer their disputes to arbitration. The absence of express, written agreement that parties would be bound by the decision of an arbitral tribunal does not by itself render such arbitration agreement invalid.
Aditya Singh, White & Case LLP, ITA Reporter for India
A court has the power to grant any interim measure of protection as would be just and convenient under the circumstances and the court is not constrained by the technicalities of the Code of Civil Procedure 1908 while granting such interim relief.
Aditya Singh, White & Case LLP, ITA Reporter for India
An arbitral award can be set aside under Section 34(2)(a)(iv) of the Arbitration and Conciliation Act 1996 if the arbitral tribunal constituted under one contract has adjudicated disputes relating to a distinct, independent contract between the same parties.
Aditya Singh, White & Case LLP, ITA Reporter for India
An arbitration agreement in an insufficiently stamped contract is enforceable unless it is clearly indicative that the arbitration agreement is unworkable.
Aditya Singh, White & Case LLP, ITA Reporter for India
Under Section 34(4) of the Arbitration and Conciliation Act 1996, courts cannot remit an award to the arbitrator to provide additional reasons or fill gaps in the reasoning on a contentious issue when the arbitrator has not given any finding on that issue in the first instance.
Company A v. Company B, District Court of Zemgale, Riga, C73295922, 26 October 2022
Inga Kacevska, Law Office of Inga Kačevska, ITA Reporter for Latvia
Arbitration clause providing for presumption of admission of possible claim is valid and has no discriminatory nature.
Inga Kacevska, Law Office of Inga Kačevska, ITA Reporter for Latvia
The court shall refuse to issue a writ of execution for compulsory execution of an award if there are no reasons given in the award.
Person B v. AS ‘Reverta’, Senate of the Supreme Court of Latvia, C04282210, 07 December 2022
Inga Kacevska, Law Office of Inga Kačevska, ITA Reporter for Latvia
Validity of the main contract and arbitration clause due to incapacity of a party.
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