Summary
Earlier this year, Rosenblatt acted for the successful Claimant in National Investment Bank Ltd. v Eland International (Thailand) Co. Ltd. [2022] EWHC 1168 (Comm) in which the court granted the National Investment Bank’s (“NIB”) application under s.72 of the Arbitration Act 1996 for a declaration that an arbitrator who was appointed in accordance with an order of the Commercial Court in 2020 under s.18 of the Arbitration Act 1996, had no jurisdiction to determine the Defendants’ claim against NIB.
The arbitral proceedings comprised an ad hoc arbitration which was allegedly brought by the Defendants against NIB by a notice of arbitration from May 2016. The arbitrator was appointed by the London Court of International Arbitration (“LCIA”) following an order the Commercial Court in September 2020. At the time of the hearing of NIB’s application arbitration was at an early stage and the Defendants had not yet articulated their claims against NIB in the arbitration. The substantive claims against NIB amounted to over $300 million and NIB was successful in obtaining a declaration that the arbitrator had no jurisdiction to determine the Defendants’ claim.
The Order of Mr Justice Foxton which declared that the arbitrator had no jurisdiction ordered the Defendants to pay NIB a sum on account of costs. Having not received payment of the debt by the date set out in the order, the Judgment Creditor issued an application for a Third Party Debt Order against the LCIA. The LCIA were in funds as the Defendants had made payments on account of the arbitrator’s future costs during the arbitration. The LCIA had provided a financial summary of the monies held on account to the parties. The monies were held by the LCIA pending further directions by the arbitrator. NIB argued that those monies were solely provided by the Judgement Debtors to the LCIA for the purposes of the arbitration under the LCIA’s terms and conditions and were now available to satisfy part of the debt owed by the Defendants. Rosenblatt was successful in obtaining a third-party debt order that the funds held on account by the LCIA could be used by NIB to satisfy part of the costs award made in NIB’s favour.
This case confirms that Third Party Debt Orders can successfully be obtained against organisations such as the LCIA. Successful applicants should be conscious of the scope of this avenue of enforcement where third parties hold funds deposited by a respondent.
The Rosenblatt team which successfully obtained the Third Party Debt Order against the LCIA included Partner Neil Sampson, Legal Director Tom Spiller, and Solicitor George Kestel.
Rosenblatt is focused on dispute resolution and in the enforcement of judgments. For enquiries, please contact Tom Spiller (Tom.Spiller@Rosenblatt.co.uk).
