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Anti-suit injunctions: third parties

Arbitration Law Monthly

Anti-suit injunctions: third parties

In Shipowners’ Mutual Protection and Indemnity Association (Luxembourg) v Containerships Denizcilik Nakliyat ve Ticaret AS (The Yusuf Cepnioglu) [2016] EWCA Civ 386, the Court of Appeal has upheld the first instance decision of Teare J, [2015] 1 Lloyd’s Rep 567, holding that an anti-suit injunction is in principle awardable against a third party who brings a claim in reliance on a contract containing an arbitration clause.

The point most commonly arises in the context of liability insurance provided to shipowners by P&I Clubs. The rules of P&I Clubs provide for disputes between the shipowner and the Club to be resolved by arbitration in London, and they also provide that the shipowner must make payment to the third party as a precondition to recovering under the insurance.

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