Jurisdiction(s):
United Kingdom

English High Court: Settlement agreement’s exclusive English court clause overrides prior ICC arbitration; s 9 Arbitration Act 1996 stay refused; Monde Petroleum applied (Destin Trading Inc v Saipem SA)

Published on: 21 May 2025

Published by a LexisNexis Arbitration expert

Legal News

Article summary

Destin Trading Inc v Saipem SA [2025] EWHC 668 (Ch) What are the practical implications of this case?

This decision provides authoritative direction on how overlapping dispute resolution clauses interact, notably where a settlement follows earlier contracts containing arbitration terms. Taking a commercially pragmatic stance, the court confirmed that a later settlement incorporating a new jurisdiction clause will generally regulate all connected disputes thereafter, unless matters are expressly carved out.

For legal practitioners, the consequences are twofold:

When negotiating settlements, evaluate whether the parties intend to displace existing arbitration provisions; if they do not, the settlement must state that intention clearly and unequivocally.
Exact drafting is vital. Broad jurisdiction wording in settlement or termination agreements can inadvertently override prior arbitral arrangements, particularly where claims, while referring to antecedent contracts, in truth arise from misrepresentation or other issues linked to the settlement itself.

The judgment also illustrates the court’s inclination to promote procedural efficiency and to avoid fragmented pathways for resolving related disputes...

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