Parties’ choice of exclusive jurisdiction clauses and stay applications (Lopesan v Apollo)

This case concerned two applications, one for a stay, and one for an expedited hearing of the trial. The stay was sought pursuant to separate proceedings commenced in Spain in respect of a Sale Purchase Agreement (SPA) containing an exclusive jurisdiction clause in favour of the Spanish courts. The proceedings in England were commenced pursuant to an Equity Commitment Letter (ECL) which contained an exclusive jurisdiction clause in favour of the English courts. There were a number of linked issues pursuant to the two claims issued. The application for a stay was dismissed, the judge considering that a practical inability to achieve an outcome where both cases are heard and determined together was a factor which weighed against the granting of a stay. There was no strong countervailing factor in the instant case which justified a departure from this position, and the fact that two well-resourced parties had expressly drafted two related documents but with differing jurisdictional clauses, was material. The application for an expedited trial was also dismissed, the judge considering
that a hearing to determine all issues between the parties before 1 January 2021 would mean that a fair trial would not likely be possible. The merits of the underlying argument purportedly necessitating the need for a speedy trial was relevant, and the discretion to grant an expedited trial was considered as against this background.

This article was first published by Lexis®PSL on 19/10/2020

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