Key Facts
- •Shell Petroleum Development Company of Nigeria Limited (Claimant) sought an anti-suit injunction against Sunlink Energies and Resources Limited (Defendant).
- •The Defendant initially challenged the court's jurisdiction but later withdrew the challenge.
- •The Defendant initiated proceedings against the Claimant in Nigeria, claiming breach of contract and seeking over US$1 billion in damages.
- •The arbitration agreement between the parties stipulated arbitration in London under the ICC Rules.
- •The ICC Court designated London as the seat of arbitration.
- •The Claimant argued the Nigerian proceedings breached the arbitration agreement.
- •The Nigerian court stayed the Nigerian proceedings in favour of arbitration.
Legal Principles
The court's jurisdiction to grant an anti-suit injunction.
CPR Part 11 (Jurisdiction Challenges)
Determination of the governing law of an arbitration agreement.
Enka v Chubb [2021] WLR 4117
Interpretation of arbitration clauses, particularly regarding the applicability of updated rules.
Clause 25 of the Joint Operating Agreement
Assessment of the validity and enforceability of arbitration agreements under Nigerian law.
Nigerian Arbitration and Mediation Act 2023, section 32
Principles for granting final anti-suit injunctions, including mandatory relief.
SM Production Corp v Gaz du Cameroun SA [2023] EWHC 2820 (Comm)
Outcomes
The court granted a final anti-suit injunction.
The Defendant breached its obligation to arbitrate by initiating and pursuing proceedings in Nigeria without arguable merit.
The court held it had jurisdiction to hear the claim.
Proper service of proceedings, withdrawal of the jurisdiction challenge, and the ICC's designation of London as the seat of arbitration.
Claimant awarded costs on an indemnity basis, summarily assessed at $490,000.
Claimant succeeded, and the Defendant's arguments lacked merit; the urgency and value of the dispute were considered but balanced against the reasonableness of the costs.