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English Commercial Court rejects AA 1996 s 67 challenge: effect of Korean spin-off on corporate succession and arbitration agreements (Energyen v HD Hyundai Heavy Industries and KSOE)

Published on: 21 July 2025

Published by a LexisNexis Arbitration expert
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Energyen Corporation v HD Hyundai Heavy Industries Co Ltd and another company [2025] EWHC 1586 (Comm) What are the practical implications of this case?

The decision furnishes a clear overview of the principles informing the English courts’ handling of the effect of overseas corporate reorganisations, in the setting of challenges to arbitral awards under AA 1996, s 67. It explains the courts’ method for analysing how corporate succession bears upon English law contracts concluded before any restructuring, and the continuing status of the arbitration agreements embedded in those contracts. The strike rate of s 67 jurisdictional challenges to awards has remained consistently low, and that picture is expected to endure following the commencement of the Arbitration Act 2025 (which takes effect on 1 August 2025). The new legislation will underpin updated court rules that will, among other matters, limit parties’ opportunity to introduce fresh grounds or new evidence in s 67 applications if these were not presented to the arbitral tribunal...

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