Jurisdictional challenge to arbitral award on the basis of award creditor’s corporate restructuring (Energyen v HHI and KSOE)
Arbitration analysis: The Commercial Court refused to overturn an arbitral award, following a jurisdictional challenge made under section 67 of the Arbitration Act 1996 (AA 1996). This arose from the Korean corporate restructuring of an original counterparty to a supply contract, which had occurred before the arbitration was commenced. The award debtor contended that, in the context of the restructuring, the award creditor was not in fact a party to the supply contract, had not commenced the arbitration and that there had been no valid transfer to the award creditor of the right to arbitrate. The case provides useful guidance for parties in relation to how the English courts will treat challenges to arbitral awards based on the contested impact of corporate succession and where questions are raised in relation to the transfer of rights to bring claims in arbitration. Written by Rebecca Warder, Head of Knowledge at Hausfeld LLP.