Starlight granted interim anti-suit injunction

In Starlight Shipping Co and anor v Tai Ping Insurance Co Ltd, Hubei Branch, the claimants were seeking an interim anti-suit injunction to restrain the defendants from taking any steps in proceedings which the first defendant had commenced against the claimants in the Wuhan Maritime Court in China. The claimants argued that the Chinese proceedings had been commenced in breach of an arbitration clause contained in a charter party, and there was no strong reason why an anti-suit injunction should not be granted. The defendants argued that they were not bound by the arbitration clause as a matter of Chinese law.

The judge held that the first claimant (but not the second claimant) was entitled to an interim injunction. He said that Chinese law was not relevant, finding that the arbitrability of the claim was governed by English law. In reaching his decision, the judge had to consider the inter-relationship between section 37 of the Supreme Court Act 1981 and section 44 of the Arbitration Act 1996 (the Act). Interestingly, his view of what amounts to "urgency" for the purposes of s.44(3) of the Act suggests that this requirement may not be particularly difficult to satisfy.