Commercial Court upholds jurisdiction challenge on the basis of State Immunity Act 1978

28 January, 2015

Graham Dunning QC and Anton Dudnikov represented a foreign regional government in a successful jurisdiction challenge in the Commercial Court: PCL & Others v The Y Regional Government of X [2015] EWHC 68 (Comm).

The claimants had applied under s 42(1) of the Arbitration Act 1996 to enforce a peremptory order of an LCIA tribunal seated in London.  They issued an arbitration claim form, and obtained ex parte orders permitting service on the Government’s solicitors in London and abridging time for filing an acknowledgment of service.  Mr Justice Hamblen set aside the orders, concluding that the claimants were “instituting proceedings” within the meaning of s 12(1) of the State Immunity Act 1978.  Accordingly, the statutory requirements on service will apply even where: (i) there is an ongoing arbitration in England; (ii) the Court proceedings may be ancillary to that arbitration; and (iii) it is said that the foreign state entity has waived immunity in the ordinary sense by agreeing to and participating in the arbitration.

Graham Dunning QC and Anton Dudnikov were instructed by Gary Born, Duncan Speller and Daniel Costelloe of WilmerHale.