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CMA CGM SA v HYUNDAI MIPO DOCKYARD CO. LTD [2008] EWHC 2791 (Comm) - Arbitration vs Brussels Regulation.

Article Excerpt
HMD and ERS entered into 4 shipbuilding contracts under which HMD would build 4 container vessels for ERS. The 4 contracts were identical in their material clauses, all of which provided for London arbitration and required either party seeking to transfer its rights and obligations under the contract to a third party to obtain the prior consent of the other party, such consent not to be unreasonably withheld.

CMA wanted to take over the contracts from ERS but HMD refused to agree to a novation. CMA therefore sued HMD in tort in French proceedings, alleging HMD was unreasonably withholding its consent in breach of the relevant article under the French Civil Code. During these proceedings, the parties finally came to agreement over the novations and a separate novation took place in respect of each shipbuilding contract. These novations however did not take effect until after the construction work on the vessels had been completed, as identified by a particular Transfer date.

The novation agreements provided inter alia for a mutual release and discharge between HMD and ERS...