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On 19 January 2016, the English High Court in Pencil Hill Ltd v US Citta Di Palermo SpA enforced an arbitral award issued by the Swiss based Court of Arbitration for Sport (“CAS”) despite the award relying, in part, on a penalty clause in the contract (such clauses are unenforceable under English law). The Court rejected a challenge to the award, which had advanced as its grounds that enforcement of a penalty clause is contrary…

In January 2016, the German Federal Supreme Court had to deal with the question whether an arbitral tribunal has jurisdiction to decide on a claim if the parties agreed on expert determination proceedings prior to arbitration but the claimant directly filed a request for arbitration. The Federal Supreme Court ruled that a pactum de non petendo included in an agreement on expert determination does not affect the arbitral tribunal’s competence to rule on a claim…

In a remarkable turn of events the District Court of The Hague has set aside six arbitration awards, including the three final awards in excess of $50bn, in the investment arbitration against the Russian Federation over the change of ownership in the former Yukos Oil Company. The decision (which can be found in full here) was released last Wednesday, 20 April 2016. The Yukos Investment Arbitration Proceedings The arbitrations were initiated in 2005 by former…

In a decision of 23 June 2015,[1] the Austrian Supreme Court (“OGH”) decided on an action to set aside an arbitral award on jurisdiction. The OGH’s decision contains clarifying remarks on the question of the applicable law to an arbitration clause and the form requirements which an arbitration clause must fulfill in order to be validly concluded pursuant to Section 583 para 1 Austrian Code of Civil Procedure (“ACCP”). 1. The underlying arbitration Claimant (who…