Justiciability

In Republic of Serbia v ImageSat International NV [2010] 1 Lloyd’s Rep 324 Beatson J discussed at length, in an appeal under s67 of the Arbitration Act 1996, the issue of whether an arbitrator possessed jurisdiction to rule on the question of whether a new state, Serbia, had acquired the rights and liabilities under an arbitration clause of an earlier dissolved state (Serbia and Montenegro) following the dissolution of that state. The outcome ultimately turned on the learned judge’s finding that Serbia had, by agreement, conferred jurisdiction on the arbitrator to rule on that matter, but the case contains a lengthy analysis of jurisdiction agreements and the consequences for a s67 application where the jurisdictional issue determined by the arbitrator was not justiciable in the English courts.

ImageSat: the facts

By an agreement dated 4 June 2005, the State Union of Serbia and Montenegro agreed to purchase a satellite ground control station from ImageSat, and the State Union also agreed to purchase exclusive rights relating to two of ImageSat’s satellites. Article 18 of the agreement provided that any dispute was to be referred to ICC arbitration, governed by English law and to be held in England.