Damages For Breach Of An Arbitration Agreement

» April 9, 2021 · · Uncategorized » no responses

A court`s appeal, in wilful violation of a valid and binding arbitration agreement for conciliation, finds a violation of this agreement. This is a direct breach of the jurisdiction of an arbitral tribunal to resolve disputes between the parties. In response, the “innocent” party may seek an injunction from the Court of Arbitration to deter the other party from pursuing the complaint it improperly brought. The Tribunal`s jurisdiction is thus preserved. But compensation for the breach of the arbitration agreement can also be recovered by the claim for compensation from the Court of Arbitration. The Supreme Court`s decision described the context of arbitration as follows: in that case, an arbitral tribunal found that a party that had improperly initiated legal proceedings in Greece had breached an arbitration agreement and had awarded the innocent party legal costs for the judicial proceedings and the amount of all payments that the Greek court could possibly order. As a result, the party`s illegal economic benefits were null and void as a result of an improperly concluded arbitration proceeding, in light of a valid arbitration agreement. The other party tried, unsuccessfully, to oppose the execution of the prize in Switzerland. Therefore, the challenge to the claim for damages cannot be at the enforcement stage, but if it seeks such compensation at first instance before the Arbitral Tribunal.

The confidential nature of arbitration proceedings makes it difficult to know how day-to-day these damages are. It is all the more regrettable for us that the Bundesgerichtshof has not examined in great detail the explanatory statement of the Court of Arbitration for the award of damages. In that case, the court was made up of highly experienced and respected arbitrators; An arbitral award from Lord Hoffman, a former lord of the English Supreme Court, leading Swiss arbitrator Pierre-Yves Gunter and Irish councillor Michael M Collins, was undoubtedly illuminating. It remains to be seen to what extent other courts and enforcement tribunals will go to compensate a party if it is forced to go into litigation pursued in defiance of a conciliation agreement. This article examines the remedies available when a party initiates legal proceedings, regardless of the existence of a valid arbitration agreement. It focuses in particular on the United States, the United Kingdom and Switzerland. When proceedings are threatened or brought before a local court that is likely to invoke the jurisdiction of the case and refuses to refer the parties to arbitration, a legal remedy is to require a determined benefit from an arbitration tribunal or arbitrator by way of referral. The authors also take a closer look at the power of an arbitral tribunal to award damages for breach of an arbitration agreement and discuss several recent cases of the Swiss Supreme Court that authorize this appeal.

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