Immunity from suit

Svenska Petroleum Exploration AB v Government of the Republic of Lithuania and another (2) CA TLR 17 November

A dispute arose out of a joint venture agreement to establish a joint stock company to exploit oil reserves in Lithuania. The Government of Lithuania was not expressed to be a party to the agreement, but it contained terms dealing expressly with the rights and obligations of the Government. Over the signature there appeared a rubric stating that the Government of Lithuania acknowledged itself to be legally and contractually bound as if it was a signatory to the agreement. The claimant referred a dispute to arbitration under a clause in the agreement and obtained an award against the Government and the other party for US$12.5m. The claimant obtained permission to enforce the award as a judgment of the court under s101 of the Arbitration Act 1996, which the defendant Government applied to set aside on the ground that it was entitled to immunity from process of any kind under s9(1) of the State Immunity Act 1978. The Government applied to set aside the order on the ground that it was entitled to immunity from process of any kind.