BUHEIRY V VISTAJET LTD

[2022] EWHC 2998 (Comm), King’s Bench Division, Commercial Court, Mr Justice Jacobs, 25 November 2022

Arbitration – Jurisdiction – Serious irregularity – Whether rights validly assigned to arbitration creditor – Whether proper notice of arbitration given to arbitration debtor – Arbitration Act 1996, sections 67 and 68

In April 2014, Mr Buheiry entered into a membership program agreement with VJLU, a company engaged in the provision of private aircraft services. The agreement was governed by English law and provided for the jurisdiction of the English courts in the event of any dispute. Under clause 7.7 VJLU was permitted to assign its rights only to its holding company or any subsidiary of its holding company. Under clause 7.11 all notices were in writing and deemed to have been given on the date of dispatch if faxed, and five days after posting if sent by registered post. On 14 July 2020, VJLU assigned its rights under the 2014 agreement to VistaJet. Following disputes, a further agreement was entered into in 2015, which provided for future disputes to be resolved by arbitration under LCIA Rules. In October 2020 VistaJet filed a Request for Arbitration which was sent to Mr Buheiry by email. He contested the jurisdiction of the tribunal on the grounds that the assignment was contrary to clause 7.7 and that the Request for Arbitration had not been validly served. The tribunal dismissed both objections and by its award dated 9 September 2021, awarded VistaJet the sum of €1,050,653.86 plus interest. Mr Buheiry challenged the award under section 67 of the Arbitration Act 1996 on the two jurisdictional grounds raised before the tribunal and also on the grounds of serious irregularity under section 68 of the 1996 Act.