Key Facts
- •Bayerische Landesbank (BL) and Landesbank Baden-Wurttemberg (LBBW) sought final anti-suit injunctions (ASIs) against Ruschemalliance LLC (RCA).
- •RCA had commenced proceedings in Russia claiming over €320 million under bonds issued by the Banks, governed by English law and containing arbitration agreements.
- •RCA was unrepresented in the English proceedings.
- •The Supreme Court had previously dismissed RCA's jurisdictional appeal in similar proceedings brought by UniCredit.
- •RCA obtained ex parte freezing orders against the Banks' assets in Russia.
- •The Banks argued that RCA's Russian proceedings breached the arbitration agreements.
Legal Principles
Principles governing the grant of an ASI: Where court proceedings are brought in breach of an agreement to arbitrate, the court will generally grant an ASI unless there are strong reasons not to.
Senior Courts Act s.37; UniCredit Bank GmbH v Ruschemalliance LLC [2024] EWCA Civ 64 (summarized in para. 81)
A promise to arbitrate is also a promise not to litigate.
Enka v Chubb [2020] 1 WLR 4117 at [174]
The choice of law in a contract extends to arbitration agreements within that contract.
Enka v Chubb [2020] 1 WLR 4117; UniCredit Bank GmbH v Ruschemalliance LLC [2024] EWCA Civ 64
In determining proper forum for an ASI claim, the court considers where the claims can be suitably tried in the interests of all parties and the ends of justice.
CPR 6.37(1)(c)
An interim or final ASI is for the purposes of and in relation to the negative promise contained in the arbitration agreement not to bring foreign proceedings.
AES Ust-Kamenogorsk Hydropower Plant LLP v Ust-Kamenogorsk Hydropower Plant JSC [2013] 1 WLR 1889 at para.48
Outcomes
Final anti-suit injunctions granted in favour of BL and LBBW.
RCA's Russian proceedings were in breach of the arbitration agreements, and there were no strong reasons to refuse the ASIs. The court found that England was the proper forum for the ASI claims.