JUDGMENT BY THE SUPREME COURT OF JUDICATURE COURT OF APPEAL (CIVIL DIVISION), LONDON CASE NO. [2007] EWCA CIV 20, RENDERED IN JANUARY 2007 and JUDGMENT BY THE HOUSE OF LORDS OF APPEAL, LONDON CASE NO. [2007] UKHL 40, RENDERED IN OCTOBER 2007 - Stockholm International Arbitration Review (SIAR) 2007 No. 3

JUDGMENT BY THE SUPREME COURT OF JUDICATURE COURT OF APPEAL (CIVIL DIVISION), LONDON CASE NO. [2007] EWCA CIV 20, RENDERED IN JANUARY 2007 and JUDGMENT BY THE HOUSE OF LORDS OF APPEAL, LONDON CASE NO. [2007] UKHL 40, RENDERED IN OCTOBER 2007

Subject Matters

1) Interpretation of arbitration agreements

2) Scope of separability principle

Findings

1) Arbitration agreements referring to disputes arising “out of” or “under” the contract are not to be given a narrow meaning.

2) The separability principle applies to claims that the contract was entered into by an agent who was bribed and thus lacked authority to conclude such contract.

Parties in Fiona Trust

Appellant/Defendant: Yuri Privalov and others

Respondent/Claimant: Fiona Trust & Holding Corporation & ors

Counsel in Fiona Trust

For Appellant/Defendant: Nicholas Hamblen QC and Vernon Flynn (Instructed by Lawrence Graham Llp)

For Respondent/Claimant: Christopher Butcher QC and Philip Jones QC (Instructed by Ince & Co)

Parties in Nafta

Appellant/Claimant: Fili Shipping Co Ltd

Defendant/Respondent: Premium Nafta Products Ltd

Counsel in Nafta

For Appellant/Claimant: Christopher Butcher QC and Philip Jones QC (Instructed by Ince & Co)

For Defendant/Respondent: Nicholas Hamblen QC and Vernon Flynn (Instructed by Lax & Co)