An article recently published in Legal Week (London arbitrators await crucial ECJ verdict, 17 May) predicted that London’s popularity as a seat for international arbitration may suffer if the European Court of Justice (ECJ) prevents English courts from restraining proceedings commenced elsewhere in Europe in breach of an arbitration agreement. The concern is that the ECJ, in neutering the English courts’ power to issue anti-suit injunctions, will trigger a loss of arbitration work to non-European venues. London’s loss will be New York’s gain.
That is the thesis. But it is a flawed thesis. New York should not be counting its chickens, and London should certainly not despair. The ECJ’s capacity to injure England – at least on this occasion – is grossly overstated. Moreover, the focus on anti-suit injunctions is an unhelpful distraction from the real problem: the European Union (EU) rules on civil jurisdiction. Fix those and there is no need for anti-suit injunctions within the EU.
