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Exclusive jurisdiction clause in settlement agreement takes precedence over prior arbitration clause, rules English Court (Destin Trading Inc v Saipem SA)

Published on: 21 May 2025

Table of contents

  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details

Article summary

Arbitration analysis: The High Court dismissed an application to stay court proceedings under section 9 of the Arbitration Act 1996 (AA 1996). The court held that an exclusive jurisdiction clause in favour of the English court in a later settlement agreement superseded earlier arbitration clauses in prior contracts. This decision confirms that when parties conclusively settle prior disputes in a new agreement, jurisdiction clauses in the settlement agreement can displace earlier dispute resolution mechanisms, particularly if the new clause is broadly framed. Litigation and arbitration practitioners alike should carefully consider the implications of dispute resolution clauses in settlement agreements, especially where prior contracts contain arbitration clauses. Written by Min Li, Partner at Reed Smith Richards Butler LLP and Patrick Chong, associate at Reed Smtih Richards Butler LLP.

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