Lloyd's Maritime and Commercial Law Quarterly
ARBITRATION LAW
Christopher Newman*
CASES
50. Avonwick Holdings Ltd v Webinvest Ltd and Mikhail Shlosberg 1
Arbitration—confidentiality—disclosure
A lender (H) and borrower (W) entered into a loan agreement for US$100 million. That loan was to form the basis of a larger loan made by W to T. T defaulted in relation to its repayment obligations to W and W commenced arbitration proceedings against T claiming repayment, which proceedings were settled. H served a statutory demand on W and W obtained an injunction restraining a winding-up petition. W contended that there was a collateral oral agreement to the effect that payments under the loan were not to be repaid until W had received the corresponding payments from T. H denied that any such agreement existed. H obtained disclosure orders which ordered the disclosure of arbitration-related material. W resisted disclosure of those arbitration materials on the basis that the loan agreement contained extensive confidentiality obligations binding on W.
Decision: Application granted.
Held: (1) The arbitration materials sought fell clearly within the terms of the disclosure order.
(2) If the court was wrong on that point, the materials should be disclosed as relevant under CPR 31; Science Research Council v Nasse
2 followed.
(3) Confidentiality is not in itself a reason not to order disclosure. The information in relation to arbitration was highly relevant to the relationship between W and T and highly relevant to H’s case that there had been no collateral agreement. Disclosure of arbitration materials will be permissible where the interests of justice require it. Michael Wilson & Partners Ltd v Emmott
3 followed.
Comment: The Arbitration Act 1996 does not include express provision covering the issues of confidentiality and privacy in arbitrations, but these issues are governed by the common law, as explained in Michael Wilson & Partners Ltd v Emmott.
* Barrister, 20 Essex Street, London
1. [2014] EWHC 3434 (Ch).
2. [1980] AC 1028.
3. [2008] EWCA Civ 184; [2008] 1 Lloyd’s Rep 616; [2008] Bus LR 1361.
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