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Relief from Sanctions granted to a Foreign State to resist enforcement of an Arbitration Award

OVERVIEW

Joseph England (led by David Wolfson QC and Nehali Shah) appeared for the successful applicant, a foreign government, in obtaining relief from sanctions/a retrospective extension of time. This was in relation to the late filing (by 13 business days) of an acknowledgement of service and application to set aside (pursuant to s.103(2) of the Arbitration Act 1996) an order permitting enforcement of an award against the foreign state’s commercial assets within England and Wales for around £70 million. Service was governed by CPR 6.44 and the provisions of the State Immunity Act 1978 such that the foreign state had 2 months and 23 days from the date of service on the equivalent of its Foreign Ministry to respond to the claim.

In an ex tempore judgment, Mrs Justice Moulder DBE held that the principles in Denton v TH White Ltd [2014] EWCA Civ 906 applied in this context, and that the breach was not significant or serious. She held that, although the applicant had no good reason for the delay, the lateness arose from a bona fide error and had no material adverse effect on the proceedings. An analysis of the decision can be found on Westlaw here.