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(2006) 1 All ER 367
(2006) 1 All ER 367
Para 57: It is clear that the intention behind section 73 is to ensure that a party
objecting to jurisdiction, who has decided to take part in the arbitral proceedings,
should bring forward his objections in those proceedings before the arbitrators.
He should not hold them in reserve for a challenge to jurisdiction in the court. I
agree with Colman J that this intention reflects a principle of "openness and fair
dealing" between parties who may, or may not, be bound by an arbitration clause.
I also agree with Colman J, therefore, that to fulfil this intention and to accord
with that principle, the words "any objection" and "that objection" in section 73
must mean "any ground of objection" and "that ground of objection".
Page 115: From a contractual point of view, a change of the place of arbitration
agreed by the parties leads inevitably to a clash between two fundamental
principles of contract law : pacta sunt servanda and rebus sic stantibus. To the
extent that the latter is widely considered as being the security valve and
exception to the former, the question will boil down to whether the changed
circumstances prevailing in a case justify the transfer of the agreed place of
arbitration.
Para 25: The concept of the seat of and arbitration was known to English
law prior to the 1996 Arbitration Act but section 3 of that Act set out a
statutory definition as follows:-
In this part "the seat of the arbitration" means the juridical seat of the arbitration
designated –
(b) by any arbitral or other institution or person vested by the parties with
Para 46: It has not generally been considered to make any difference in this
regard that the arbitration clause provides for arbitration to take place in a
different country from the country whose law has been chosen to govern
the contract. Examples of decisions in which a choice of law clause in the
contract has been treated as applying to the arbitration agreement despite
the seat of arbitration being in a different jurisdiction include: Cia Maritima
Zorroza SA v Sesostris SAE (The Marques De Bolarque) [1984] 1 Lloyd's Rep
652, 653; Union of India v McDonnell Douglas Corpn [1993] 2 Lloyd's Rep 48,
49-50; Sumitomo Heavy Industries Ltd v Oil and Natural Gas Commission [1994]
1 Lloyd's Rep 45, 57; Deutz AG v General Electric Co (Thomas J, 14 April
2000) at p 17; Peterson Farms Inc v C&M Farming Ltd [2004] EWHC 121
(Comm); [2004] 1 Lloyd's Rep 603, paras 43-46; Leibinger v Stryker Trauma
GmbH [2005] EWHC 690 (Comm), para 38; and Svenska Petroleum
Exploration AB v Government of the Republic of Lithuania [2005] EWHC 2437
(Comm); [2006] 1 All ER (Comm) 731, paras 76-77.