The interim powers of the court

Restraining breach of contract pending an award

Under s44(2)(e) of the Arbitration Act 1996 the court has the power to grant an interim injunction in support of an arbitration agreement. If the case is one of urgency, the court may intervene only to preserve assets or evidence (s44(3)). In all other cases the court may intervene only with the permission of the tribunal or with the written agreement of the parties (s44(4)) in circumstances where the arbitrators themselves cannot act (s44(5)). In Lauritzencool AB v Lady Navigation Inc [2005] EWCA Civ 579 an injunction was sought by the claimant, seeking to prevent a potential breach of contract by the defendant pending the outcome of an arbitration between the parties. No jurisdictional issue was raised, as the parties agreed in writing that the application could be made to the court under s44(2)(e). The question for the Court of Appeal was whether the injunction sought was one which by its nature the court could grant.