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United Kingdom

EWCA: Arbitration clause stating award ‘wholly enforceable’ amounts to consent to execution under SIA 1978 s 13(3)

Published on: 26 March 2025

Published by a LexisNexis Arbitration expert
Legal News
Table of contents
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details
Article summary

General Dynamics United Kingdom Ltd v The State of Libya [2025] EWCA Civ 134 What are the practical implications of this case?

This judgment clarifies the bar for waiving execution immunity under the SIA. It is of particular importance to those contracting with sovereigns or state‑owned bodies, as it confirms that broadly worded commitments to the enforceability of an arbitral award can amount to a waiver of execution immunity, even without an explicit mention of the SIA. General formulations acknowledging that an award will be enforceable may suffice to displace execution immunity. Careful drafting remains essential so the enforcement position is unmistakable. Practitioners advising on the drafting of arbitration agreements involving state counterparties should ensure the wording used captures the parties’ intentions on enforcement...

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