Coronavirus (COVID-19)

This subtopic is a source of resources for arbitration practitioners in light of the coronavirus (COVID-19) pandemic.

Across the world, arbitral organisations and practitioners have responded, and will continue to respond, to the outbreak with practical guidance, advice and adjustments to their standard operating procedures as society adjusts to the virus.

Coronavirus and its affects require parties, practitioners and arbitrators to think carefully about how the pandemic may influence arbitral proceedings already on foot or which have yet to be commenced.

In advance of commencing arbitral proceedings (including any applications for expedited and emergency arbitration), it is vital for practitioners to check the latest guidance provided by any relevant arbitral organisation that may impact standard processes. In pending proceedings, parties should liaise with their tribunals and the other parties to resolve any challenges that arise, including in relation to conducting hearings during this period when social distancing, travel restrictions and other limitations apply.

It is also very likely that any arbitration-related court processes will be impacted by the outbreak, and it will be important to stay up to date with the latest guidance from the relevant

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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.

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