INTERPRODS LTD V DE LA RUE INTERNATIONAL LTD

[2014] EWHC 68 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Teare, 27 January 2014

Arbitration - Jurisdiction - Whether arbitration clause extended to allegations of criminality - Serious irregularity - Apparent bias - Arbitration Act 1996, sections 67 and 68

Interprods, a Nigerian company, acted as agent and distributor in Nigeria for De La Rue. The agency agreements were terminated in September 2011 after De La Rue asserted that Interprods had stated that the commission paid to it would be used to bribe Nigerian officials. In November 2011 De La Rue commenced LCIA arbitration seeking a declaration that the agency had been lawfully terminated and that no further payments of commission were required. By an award dated 3 July 2013 the arbitrator held, as preliminary issues, that Interprods had indeed made the statement alleged by De La Rue and that the declarations would be granted.