Courts restrict contractual gateway for service out under CPR 6.33(2B) (White Rock Corp v Middle Volga Shipping)
Dispute Resolution analysis: Where a contract gives the English courts’ jurisdiction to determine a claim, or the claim is 'in respect' of such a contract, the claimant can serve proceedings out of the jurisdiction without the English court's permission. However, whether or not such a contract exists and whether it binds the parties to the dispute is not always obvious. The High Court has now provided welcome clarification of the rule. A 'contract' in CPR 6.33(2B)(b) and (c) means 'a contract to which the defendant is subject'. In other words, a claimant cannot argue that their claim is 'in respect of' a contract if they cannot show a good arguable case that the defendant is a party to it. In this case, White Rock Corp failed to show a good arguable case that Middle Volga was a party to the charterparty or otherwise bound by its English jurisdiction clause. Middle Volga's challenge to jurisdiction therefore succeeded. Written by Harriet Campbell, senior knowledge lawyer at Penningtons Manches Cooper LLP.