High Court grants urgent injunction in aid of an intended arbitration

Isaac Wong has secured an urgent injunction in the High Court in aid of an intended arbitration. The Applicant owns a business and the premises on which the business is run. She entered into a Management Agreement with the First Respondent, who agreed to operate the business for her. The Management Agreement contained an arbitration clause, stating “Disputes shall be finally resolved by arbitration in London under the LCIA Rules. The courts of England and Wales shall have exclusive jurisdiction to grant interim or emergency relief.”

A few months after the Management Agreement was entered into, both parties served notices to terminate, but the First Respondent refused to vacate the premises or return the control of the business to the Applicant, contending that the Management Agreement is, in fact, a lease. The Applicant therefore applied for an injunction that the Respondents (the First Respondent and directors and employees of it) deliver up the business assets, return the control of the business to the Applicant, and vacate the premises.

Richard Smith J granted the injunction sought, agreeing with Isaac’s submission that because of the wording of the arbitration clause, the court has jurisdiction under section 37 of the Senior Courts Act, not section 44 of the Arbitration Act, and so the requirements in section 44 do not apply. He also held that the Respondents failed to put forward an arguable case that the Management Agreement is a lease. The Respondents are therefore trespassing and operating the Applicant’s business without her consent.

Isaac was instructed by Zehra Tamkan of Connaught Law.