SOVAREX SA V ROMERO ALVAREZ SA

[2011] EWHC 1661 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Hamblen, 29 June 2011

Arbitration - Summary enforcement - Challenge to enforcement based on the jurisdiction of the arbitrations - Whether the respondent had lost the right to challenge - Effect of parallel judicial proceedings in Spain - Arbitration Act 1996, sections 66 and 73 - Civil Procedure Rules, rule 62.6

Sovarex contended that it had entered into a contract under which it was to sell to Alvarez 5,000 mt of sunflower seeds for shipment between 15 September and 15 October 2008, and that the contract contained an arbitration clause providing for arbitration in London under FOSFA Rules. Alvarez denied the existence of any contract and in October 2008 Alvarez commenced proceedings in Spain for a declaration to the effect that there was no contract between the parties. Sovarex commenced a FOSFA arbitration on 16 December 2008. Alvarez refused to appoint an arbitrator, and at various points during the arbitration it contacted the arbitrators emphasising that it would not appear. On 29 January 2010 the arbitrators issued an award in favour of Sovarex, in the sum of €1,035,000 plus interest and costs. In September 2010 the Spanish court ruled that there was no procedure under Spanish law for making an order that Alvarez was not liable to Sovarex. Alvarez appealed against that ruling, but on 19 October 2010 Sovarex commenced proceedings in England under section 66 of the Arbitration Act 1996 for permission to enforce the award in the same manner as a judgment and to enter judgment in terms of the award. Hamblen J held as follows.