English Court Refuses Anti-Suit Injunction Against Non-Party To Arbitration Agreement
In Evison Holdings Ltd v International Co Finvision Holdings, Orient Express Bank Public Joint Stock Company [2019] EWHC 3057 (Comm) the English Court dismissed an application for the continuance of an anti-suit injunction against a non-party to an arbitration agreement, which was issued in support of LCIA arbitration proceedings. The anti-suit injunction was ordered based on the non-party initiating and pursuing proceedings in Russia relating to the same or overlapping issues as in the LCIA arbitration proceedings. The application was dismissed on the basis that Russia was a proper and natural forum for the non-party to the arbitration to bring its claims.
Background
Evison Holdings Ltd (Evison) and International Co Finvision Holdings (Finvision) entered into agreements (the Agreements), which related to a merger of Finvision's banking subsidiary, Uniastrum, into Evison's banking subsidiary, Orient Express Bank Public Joint Stock Company (OEB). The Agreements contained LCIA arbitration clauses with a seat in London.
The disputes arose under the Agreements following Finvision's attempt to exercise a call option to acquire a tranche of Evison shares in OEB which would give Finvision control over OEB (the Call Option).
Procedural history
LCIA arbitrations
Evison initiated four LCIA arbitrations with the same arbitrators appointed in each of the arbitrations (the Tribunal) in relation to the disputes, and Finvision responded with cross-claims against Evison seeking damages (which it incurred in its capacity as shareholder of OEB) for wrongdoings allegedly carried out while Evison was in control of OEB (the Cross-claims).
Russian courts - Finvision
Finvision commenced proceedings in the Russian courts requiring Evison to transfer OEB shares subject to the Call Option (the Finvision Russian Proceedings). Evison obtained urgent anti-suit relief from the Tribunal and orders from the English courts restraining Finvision from pursuing the Finvision Russian Proceedings (the Finvision Orders). However, in breach of the Finvision Orders, Finvision proceeded with the Finvision Russian Proceedings, eventually obtaining control over OEB. Finvision then appointed new management in OEB (the New Management).
Russian courts - OEB
The New Management caused OEB to commence a claim against Evison in the Russian courts (theOEB Russian Proceedings) claiming for the wrongdoings referred to in the Cross-claims (theOEB Claims). Finvision was added...
To continue reading
Request your trial