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The Availability of Damages in the EUROPEAN UNION for Breach of the Arbitration Agreement

By: Sievi, Nino | Dispute Resolution Journal, February-April 2011 | Article details

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The Availability of Damages in the EUROPEAN UNION for Breach of the Arbitration Agreement


Sievi, Nino, Dispute Resolution Journal


An issue of great interest in view of the unavailability of anti-foreign-suit injunctions in the EU.

Clauses providing that any dispute shall be referred to an arbitral tribunal are nothing special in international commercial contracts. However, some parties decide to breach the arbitration clause, perhaps believing that it might stand a better chance before its home court, or that it might gain time by doing so.1

An efficient remedy to prevent the continuation of such a breach in the European Com - munity (EC) is an anti-foreign-suit injunction, which prevents a party from continuing a foreign court proceeding so that arbitration can take place. However, in Allianz SpA v. …

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