Soleymani v Nifty Gateway Llc: ComC 24 Mar 2022

Arbitration jurisdiction applications stayed

The claimant sought declaratory relief as to the basis of a purchase after he placed a bid for a blockchain-based non-fungible token (also known as an NFT) associated with an artwork by the artist known as Beeple titled ‘Abundance’. The court was now asked to decide was whether the English court should decline jurisdiction over the Claimant’s claim or stay the proceedings. The claimant said that he was unaware that the top 100 bidders would each receive a right to a copy of the work; that it was a ranked auction. The parties now disputed whether the arbitration had been a consumer arbitration subject to the jurisdiction of the arbitrator.
Held: The claim for a declaration as to the enforceability of the arbitration agreement should be stayed under section 9 of the Arbitration Act 1996. The claim as to whether any contract is illegal under the Gambling Act 2005, or as to whether the choice of law provision is enforceable should also be stayed for the same reasons, and because those issues clearly fall within the substantive issues that would be for the tribunal to decide if it has jurisdiction.

Judges:

Ms Clare Ambrose

Citations:

[2022] EWHC 773 (Comm), [2022] WLR(D) 165

Links:

Bailii, WLRD

Statutes:

Civil Jurisdiction and Judgments Act 1982 15B(1), Consumer Rights Act 2015 62(1), Arbitration Act 1996 7 9, Gambling Act 2005

Jurisdiction:

England and Wales

Citing:

CitedFour Seasons Holdings Incorporated v Brownlie SC 19-Dec-2017
The claimant and her family were in a car crash while on holiday in Egypt. The claimant’s husband and his daughter died. The holiday had been booked in England and the car excursion booked in advance from England. The hotel operator was incorporated . .
CitedRich v Societa Italiana Impianti (Rec 1991,p I-3855) (Judgment) ECJ 25-Jul-1991
Convention on Jurisdiction and Enforcement of Judgments – Scope – Matters excluded – Arbitration – Meaning – Application to a court for the appointment of an arbitrator – Included – Need to settle a preliminary question concerning the existence or . .
CitedBitar v Banque Libano-Francaise SAL QBD 20-Oct-2021
. .
CitedKaefer Aislamientos Sa De Cv v AMS Drilling Mexico Sa De Cv and Others CA 17-Jan-2019
. .
CitedThrough Transport Mutual Insurance Association (Eurasia) Ltd v New India Assurance Association Company Ltd CA 2-Dec-2004
. .
CitedGoldman Sachs International v Novo Banco SA SC 4-Jul-2018
A banking facility was provided under a contract applying English law and jurisdiction. The parties now disputed whether on an assignment the dispute was to be resolved under Portuguese law.
Held: Recognition in the United Kingdom of measures . .
CitedWASA International Insurance Company Ltd v Lexington Insurance Company CA 29-Feb-2008
. .
CitedAllianz Spa (Anciennement Riunione Adriatica Di Sicurta) v West Tankers Inc (‘the Front Comor’) ECJ 10-Feb-2009
ECJ (Judgment) A West Tankers ship damaged a jetty in Syracuse. An agreement provided for an arbitration in London. The insurers having paid out brought a subrogated action in Italy. West Tankers sought an order . .
CitedPeter Pammer v Reederei Karl Schluter GmbH and Co KG etc ECJ 7-Dec-2010
ECJ (Grand Chamber) Jurisdiction in civil and commercial matters – Regulation (EC) No 44/2001 – Article 15(1)(c) and (3) – Jurisdiction over consumer contracts – Contract for a voyage by freighter – Concept of . .
CitedGolden Ocean Group Ltd v Humpuss Intermoda Transportasi Tbk Ltd and Another ComC 16-May-2013
The ‘Barito’) Application for permission to serve an arbitration claim form out of the jurisdiction on the First and Second Defendants and for an interim ‘anti-arbitration’ injunction to restrain the Second Defendant from pursuing arbitration . .
CitedJoint Stock Company ‘Aeroflot-Russian Airlines’ v Berezovsky and Others CA 2-Jul-2013
Aikens LJ explained: ‘It is necessary first to analyse the structure of section 9(1) and (4) of the AA 1996, to see where the burden lies and what standard of proof is required when there is an application for a stay of proceedings because one side . .
CitedZealander and Zealander v Laing 19-Mar-1999
‘A book has been cited to me: Harris Plantrose and Teck on the Arbitration Act 1996 . It explains, without giving its source, those words ‘not covered by legal provisions’. What is said is that those words were inserted to take account of particular . .
CitedCavendish Square Holding Bv v Talal El Makdessi; ParkingEye Ltd v Beavis SC 4-Nov-2015
The court reconsidered the law relating to penalty clauses in contracts. The first appeal, Cavendish Square Holding BV v Talal El Makdessi, raised the issue in relation to two clauses in a substantial commercial contract. The second appeal, . .
CitedGolden Ocean Group Ltd v Humpuss Intermoda Transportasi Tbk Ltd and Another ComC 16-May-2013
The ‘Barito’) Application for permission to serve an arbitration claim form out of the jurisdiction on the First and Second Defendants and for an interim ‘anti-arbitration’ injunction to restrain the Second Defendant from pursuing arbitration . .
CitedMylcrist Builders Ltd v Buck TCC 19-Sep-2008
The claimant sought to enforce an arbitration award. They had constructed an extension for the defendants, but had not been paid. . .
CitedA v B ComC 28-Jul-2006
Application for stay of arbitration.
Colman J explored the correct approach where matters are raised under s9(4): ‘Where the court takes the course of deciding the matter [under s9(4)], the Court of Appeal, again in the Al-Naimi case, . .
Lists of cited by and citing cases may be incomplete.

Jurisdiction, Arbitration, Consumer

Updated: 13 April 2022; Ref: scu.675518