Brexit

Brexit

ARCHIVED: This Overview has been archived and is not maintained.

On exit day (ie 11:00 pm on 31 January 2020, as defined in section 20 of the European Union (Withdrawal) Act 2018, the UK ceased to be an EU Member State and lost its entitlement to participate in the political institutions and governance structures of the EU. In accordance with the transitional arrangements provided in Part 4 of the Withdrawal Agreement, exit day marked the commencement of an 11-month implementation period during which the UK was treated by the EU as a Member State for many purposes.

The implementation period ran until 11 pm on 31 December 2020, a point known as IP completion day (as defined in section 39 of the European Union (Withdrawal Agreement) Act 2020. During that period, the UK was obliged to adhere to its obligations under EU law (including EU treaties, legislation, principles and international agreements), and submit to the continuing jurisdiction of the Court of Justice of the European Union in accordance with the Withdrawal

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Latest Arbitration News

Action to enforce US$21M award against Guinea dismissed for lack of jurisdiction

Mealey’s: A US District Court for the District of Columbia judge on 18 February 2025 granted the Republic of Guinea’s motion to set aside default entered against it and to dismiss for lack of jurisdiction a telecommunications company’s action to enforce an International Chamber of Commerce (ICC) award worth than US$21m after finding that Guinea was not a party to the underlying arbitration agreement.

ICCA announces leadership changes and new governing board appointments

The International Council for Commercial Arbitration (ICCA) has announced changes to its leadership structure, with Audley Sheppard KC elected as President-Elect to succeed current President Stanimir Alexandrov in 2026. Dyalá Jiménez, former Minister of Foreign Trade of Costa Rica, will assume the role of Vice President from 1 April 2025. Additionally, five new Governing Board Members have been appointed: Aisha Abdallah (Kenya), Chiann Bao (Singapore), Tunde Fagbohunlu (Nigeria), Shaneen Parikh (India) and Vladimir Pavić (Serbia), whilst Judith Gill has been re-elected for a second term. The new appointments will take effect from 1 April 2025, with the new board members formally joining at the ICCA-KIAC Conference in Kigali on 5 June 2025.

Stay of application for injunction in favour of Arbitration (Hunt v IPS Law LLP and Others)

Arbitration analysis: The claimant, Mr Hunt, invested £1.05m in January 2023 through IPS Law LLP (‘IPS Law’), the second defendant, which was meant to hold the funds for the first defendant, Oceania Capital Reserves Ltd (‘Oceania’). IPS Law later apparently transferred the funds, but the circumstances in which that occurred (and the instructions on which IPS Law and its principal, Mr Farnell, the third defendant, relied) were unclear. Mr Hunt applied for an injunction to preserve the funds in IPS Law’s account. The defendants, in return, applied for a stay of the proceedings, arguing that the Investment Agreement between Mr Hunt and Oceania (with IPS Law as the ‘Investment Escrow Party’) referred disputes to arbitration. The court held that IPS Law was not a party to the arbitration clause and could not rely upon it under the Contracts (Rights of Third Parties) Act 1999 (C(RTP)A 1999) (Mr Farnell accepted he was not a party). The court decided, however, that there was a serious issue to be tried in relation to the handling of Mr Hunt’s funds and accordingly granted a proprietary injunction. The case addresses issues over the court’s jurisdiction to order a stay under section 9 of the Arbitration Act 1996 (AA 1996) and its ability to order relief where funds held in a solicitors’ client account have been paid away apparently without instruction. Written by Oliver Browne, partner, at Paul Hastings (Europe) LLP.

Court of Appeal—final anti-suit injunction varied to avoid Russian court penalty (UniCredit v RusChemAlliance)

Dispute Resolution analysis: The Court of Appeal ordered that a final anti-suit injunction (ASI) should be varied to remove the injunctive element but maintain a declaration that the English court has jurisdiction to hear the claim. The applicant bank (UniCredit) would otherwise have incurred a significant penalty from the Russian court. The original ASI had prevented the respondent (RCA) (who had breached the Paris-seated arbitration clause) from bringing proceedings in Russia. The court confirmed that CPR 3.1 (the court’s general powers of management) and CPR 52.30 (reopening of final appeals) provide the court with powers to vary or revoke an ASI, if the commercial situation allows. There is no material distinction between where the order is an interim vs a final order and a pragmatic approach will be afforded when considering factors related to the application, namely (i) if the applicant has been coerced, (ii) English public policy and (iii) the impact if the application is not granted. Written by Sarah Ellington, partner at Watson Farley & Williams LLP.