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Enron Metals & Commodity Ltd v HIH Casualty & General Insurance Ltd

Enron Metals & Commodity Ltd v HIH Casualty & General Insurance Ltd 10 March 2005 Pumfrey J Chancery Division [2005] EWHC 485 [2005] ArbLR 23 Arbitration agreement--Enforcement--Company in provisional liquidation-- Application for permission to commence arbitration--Whether any merit in claim (no)--Whether to grant permission for commencement of arbitration (no)--Insolvency Act 1986, s 130(2) Claim devoid of merit should not go to arbitration Under the terms of a trade insurance policy, HIH was liable to indemnify Enron in respect of default by Straights Resources Ltd for the supply of copper cathodes against an advance payment of US$15 million. The parties entered into an interim agreement which provided for an amended and restated loan agreement to be executed. The interim agreement was terminated by Straights which commenced LME arbitration proceedings. HIH contended that the perfecting of the amended and restated loan agreement was an express condition of the extension of cover under an endorsement to the policy. Held: Permission to commence arbitration proceedings was denied. HIH was not on cover. The court was obliged to consider the merits of the dispute before deciding whether it should go to arbitration. The claim was devoid of merit. The loan agreement had not been perfected. On the basis of the evidence, the matter would be http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Arbitration Law Reports and Review Oxford University Press

Enron Metals & Commodity Ltd v HIH Casualty & General Insurance Ltd

Arbitration Law Reports and Review , Volume 2005 (1) – Jan 1, 2005

Enron Metals & Commodity Ltd v HIH Casualty & General Insurance Ltd

Arbitration Law Reports and Review , Volume 2005 (1) – Jan 1, 2005

Abstract

10 March 2005 Pumfrey J Chancery Division [2005] EWHC 485 [2005] ArbLR 23 Arbitration agreement--Enforcement--Company in provisional liquidation-- Application for permission to commence arbitration--Whether any merit in claim (no)--Whether to grant permission for commencement of arbitration (no)--Insolvency Act 1986, s 130(2) Claim devoid of merit should not go to arbitration Under the terms of a trade insurance policy, HIH was liable to indemnify Enron in respect of default by Straights Resources Ltd for the supply of copper cathodes against an advance payment of US$15 million. The parties entered into an interim agreement which provided for an amended and restated loan agreement to be executed. The interim agreement was terminated by Straights which commenced LME arbitration proceedings. HIH contended that the perfecting of the amended and restated loan agreement was an express condition of the extension of cover under an endorsement to the policy. Held: Permission to commence arbitration proceedings was denied. HIH was not on cover. The court was obliged to consider the merits of the dispute before deciding whether it should go to arbitration. The claim was devoid of merit. The loan agreement had not been perfected. On the basis of the evidence, the matter would be

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Publisher
Oxford University Press
Copyright
© Oxford University Press, 2009
Subject
Judgments
ISSN
2044-8651
eISSN
2044-9887
DOI
10.1093/alrr/2005.1.347
Publisher site
See Article on Publisher Site

Abstract

10 March 2005 Pumfrey J Chancery Division [2005] EWHC 485 [2005] ArbLR 23 Arbitration agreement--Enforcement--Company in provisional liquidation-- Application for permission to commence arbitration--Whether any merit in claim (no)--Whether to grant permission for commencement of arbitration (no)--Insolvency Act 1986, s 130(2) Claim devoid of merit should not go to arbitration Under the terms of a trade insurance policy, HIH was liable to indemnify Enron in respect of default by Straights Resources Ltd for the supply of copper cathodes against an advance payment of US$15 million. The parties entered into an interim agreement which provided for an amended and restated loan agreement to be executed. The interim agreement was terminated by Straights which commenced LME arbitration proceedings. HIH contended that the perfecting of the amended and restated loan agreement was an express condition of the extension of cover under an endorsement to the policy. Held: Permission to commence arbitration proceedings was denied. HIH was not on cover. The court was obliged to consider the merits of the dispute before deciding whether it should go to arbitration. The claim was devoid of merit. The loan agreement had not been perfected. On the basis of the evidence, the matter would be

Journal

Arbitration Law Reports and ReviewOxford University Press

Published: Jan 1, 2005

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