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Stockholm Arbitration Report (SAR)

Preview Page SAR 2003 - 1

Observations by Otto Sandrock

Subject matter: Costs incurred in foreign jurisdiction. A party was unable to recover costs in foreign proceedings. Whether party was entitled to recover foreign costs as damages for breach of exclusive jurisdiction clause in subsequent proceedings.

Finding: In breach of an exclusive jurisdiction clause a party litigated in a jurisdiction, except occasionally, did not award costs in strike out proceedings. Therefore the party who successfully applied for the strike out did not ask for costs. Justice requires that the party should receive the damages it had suffered by reason of the breach. The situation is akin to malicious prosecution.

Parties:
Claimant: Union Discount Company Ltd.
Respondent: 1. Robert Zoller & others, 2. Union Cal Ltd.

Place of Court Proceedings: London, England

Applicable Law: English