Originally from Dispute Resolution Journal

Recent Decisions by National Courts

England. In a decision dated June 12, 2013 (Ust-Kamenogorsk Hydropower Plant JSC v AES Ust-Kamenogorsk Hydropower Plant LLP [2013] UKSC 35) the UK Supreme Court confirmed that the English courts have the power to issue an anti-suit injunction to prevent commencement or continuation of foreign proceedings taking place outside of Europe on the basis that such foreign proceedings are in breach of an English arbitration agreement. Importantly, the Supreme Court confirmed that such injunction may be issued even though it is not in support of arbitration proceedings.

AES and JSC were parties to a 25 year concession agreement which allowed AES to operate an energy producing hydroelectric power plant in Kazakhstan, owned by JSC. The concession agreement was governed by Kazakh law and contained an arbitration clause which provided for ICC arbitration in London. The arbitration clause was governed by English law.

A dispute arose between the parties which led to various proceedings in the Kazakh courts initiated by JSC (or its predecessor). In particular, in June 2009 JSC brought proceedings on the merits against AES under the concession agreement. The Kazakh courts dismissed AES's application to stay the proceedings under the arbitration clause, on the basis that such arbitration clause had been annulled by the Kazakh Supreme Court in previous proceedings.