Bayerische Landesbank & Anor v Ruschemalliance LLC
[2024] EWHC 1822 (Comm)
Deutsche Bank AG v Ruschemalliance LLC
11 October 2023
[2023] EWCA Civ 1144
Court of Appeal
A German bank and a Russian company had an agreement to settle disputes through arbitration in Paris. The Russian company sued the bank in Russia, breaking the agreement. The bank asked an English court to stop the Russian lawsuit. The English court said it would because French courts don't allow this kind of thing, but the English court does, to make sure agreements are followed.
Key Facts
- •A German bank (Deutsche Bank AG - DB) issued a guarantee to a Russian company (RusChemAlliance LLC - RCA) governed by English law and with arbitration in Paris.
- •RCA initiated proceedings in Russia against DB after DB refused payment due to sanctions.
- •DB applied for an anti-suit injunction (ASI) in England to halt the Russian proceedings.
- •The High Court dismissed DB's application, finding England not the proper forum.
- •DB appealed to the Court of Appeal.
Legal Principles
Power to grant an ASI.
Senior Courts Act 1981, s. 37(1)
Principles for granting an ASI.
Aggeliki Charis Compania Maritima SA v Pagnan SpA (The Angelic Grace) [1995] 1 Ll Rep 87
Approach to ASIs concerning foreign arbitration.
Channel Tunnel Group Ltd v Balfour Beatty Construction Ltd [1993] AC 334
Proper forum for an ASI claim.
CPR r 6.37(3), VTB Capital plc v Nutritek International Corp [2012] EWCA Civ 808
Enforcement of negative contracts.
Doherty v Allman (1878) 3 App Cas 709
Recognition of foreign ASIs in France.
Expert evidence of Professors Brenner and d'Avout
Outcomes
Appeal allowed.
England is the proper forum because an ASI cannot be obtained in France, not due to philosophical objection, but lack of procedural rules. The English court's grant of an ASI upholds the parties' arbitration agreement.
ASI granted.
To enforce the arbitration agreement and restrain RCA from pursuing Russian proceedings.
Anti-enforcement injunction (AEI) granted.
To prevent RCA from enforcing any judgment obtained in Russia, given the uncertainty of discontinuation approval.