Fibria Celulose S/A v Pan Ocean Company Ltd and Another
| Jurisdiction | England & Wales |
| Judge | Mr Justice Morgan |
| Judgment Date | 30 June 2014 |
| Neutral Citation | [2014] EWHC 2124 (Ch) |
| Docket Number | Case No: 04446 of 2013 |
| Court | Chancery Division |
| Date | 30 June 2014 |
[2014] EWHC 2124 (Ch)
IN THE HIGH COURT OF JUSTICE
CHANCERY DIVISION
COMPANIES COURT
Rolls Building,
110 Fetter Lane,
London EC4 1NL
The Honourable Mr Justice Morgan
Case No: 04446 of 2013
MR M Collings QC and Mr A Winter (instructed by Thomas Cooper LLP appeared on behalf of the Claimant.
Mr M Phillips QC and Mr S Robins (instructed by DLA Piper UK LLP) appeared on behalf of the Defendant.
Monday, 30 June 2014
I have handed down judgment in the matter of Pan Ocean Company Limited, a case which concerned a number of points under the Cross-Border Insolvency Regulations 2006. The parties have agreed substantial parts of the order consequential on that judgment. I will now refer to the points where they are not agreed, where I am asked to resolve the disagreement.
The first such point relates to an application made by Fibria Celulose SA for permission to commence an arbitration against Pan Ocean Company Limited. I need not go into the background to that. A great deal of information about that is set out in the judgment I have handed down. It seems to me that it is appropriate in this case for that permission to be given. I will deal separately with the effect of an appeal against my decision and whether there should be a stay.
As to whether permission should be given, the arbitration which is said to be appropriate, if it is necessary at all, but it is said to be appropriate, is to determine the rights of the parties under the contract referred to in the judgment. If there is no defence to the declaratory relief which is sought by Fibria, then it is not necessary to have an arbitration, but Pan Ocean is not yet prepared to say that there is no defence, so that means that it still is necessary to have an arbitration. Pan Ocean suggests that there may be points that they are able to take, in which case they should be resolved by arbitration, and subject to the possibility of a stay pending appeal, that step should now be available to Fibria.
So I will give permission to Fibria to commence an arbitration. Reference was made to the basis on which that application was made to the court. It was on the basis that the arbitration would be for declaratory relief, and for the sake of clarity that should be expressed in the order I make.
I go from there to the costs of the various applications before me. There is no dispute about the costs of what is described as the relief application, nor of the request application. As to the costs of the permission application, I am effectively giving Fibria the relief it has sought in that respect. It had to make this application and pursue this application to obtain that relief, and it is entitled to its costs of obtaining that relief.
The next matter I am asked to deal with is whether there should be payment...
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