Republic of Mozambique (acting through its Attorney General) (Appellant) v Privinvest Shipbuilding SAL (Holding) and others (Respondents)

Case summary

Case ID

UKSC/2021/0085

Parties

Appellant(s)

Republic of Mozambique (acting through its Attorney General)

Respondent(s)

Privinvest Shipbuilding SAL (Holding) and others

Issue

Whether the Court of Appeal erred in its approach to section 9 of the Arbitration Act 1996 in finding that the Republic of Mozambique's ("Mozambique") claims were "matters" within the scope of the relevant arbitration agreements.

Facts

This case concerns the "Tuna Bond" scandal in Mozambique. Three corporate vehicles wholly owned by Mozambique (the "SPVs") entered into supply contracts (the "Contracts") with three of the respondents (the "Privinvest companies") for the development of Mozambique's exclusive economic zone. The SPVs borrowed the purchase funds from various banks, over which borrowing Mozambique granted sovereign guarantees (the "Guarantees"). The Guarantees are governed by English law and provide for dispute resolution in the courts of England and Wales. Mozambique accuses the Privinvest companies and various others of paying significant bribes to Mozambique's corrupt officials, exposing it to a potential liability of approximately US $2bn under the Guarantees, and accordingly brought proceedings in England and Wales. The Contracts are governed by Swiss law and provide for dispute resolution by arbitration. Mozambique is not a signatory to the Contracts, but Privinvest contends that as a matter of Swiss law Mozambique is party to them and bound by the arbitration agreement within them. On that basis, Privinvest sought a stay of all Mozambique's claims pursuant to section 9 of the Arbitration Act 1996. As a preliminary question, the issue arose as to whether Mozambique's claims were "matters" which fell within the scope of the arbitration agreements under section 9. At first instance, the High Court held the claims were not. The Court of Appeal disagreed on appeal.

Date of issue

8 April 2021

Judgment appealed

Judgment details

Judgment date

20 September 2023

Neutral citation

[2023] UKSC 32

Judgment links

Judgment summary

25 October 2023

Appeal

Justices

Lord Hodge

Lord Lloyd-Jones

Lord Hamblen

Lord Leggatt

Lord Richards

Hearing dates

Full hearing

Start date

24 January 2023

End date

25 January 2023

Watch hearings

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