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Australia : DLA Piper advises client Jiangsu Eastern on English High Court win.

DLA Piper has successfully represented its clients Jiangsu Eastern Heavy Industry Co. Ltd ("Jiangsu Eastern"), a large shipyard in China, and Chinese trading house Ningbo Ningshing International ("Ningbo Ningshing") in a litigation case in the English High Court.

The case related to a claim against both Jiangsu Eastern and Ningbo Ningshing (the "Sellers") in relation to two shipbuilding contracts with Primera Maritime (Hellas) Limited ("Primera"), for the order of two bulk carriers, to be built at Jiangsu Eastern in China. The claims arose in connection with both contracts, and were referred to arbitration in London.

Primera claimed that the Sellers had been in anticipatory breach of contract by refusing to perform the contracts in accordance with their terms, specifically in relation to delivery dates, and thereby having renounced the contracts. The arbitration hearing dismissed Primera's claims and found that, although the Sellers had renounced the initial contracts, they had then been later affirmed by Primera. The application by Primera to the English High Court sought to set aside the findings of the arbitration, claiming that it failed to deal with two issues; that the renunciation by the Sellers was continuous; and in relation to the quantum of their claim. The English High Court dismissed the application, finding in favour of Jiangsu Eastern and Ningbo Ningshing.

Ernest Yang, Partner at DLA Piper said: "This case is a significant win for our clients and we are pleased that the Tribunal's original Reasons were upheld by the High Court. Decisions such as this reinforces the need for a losing party to be very cautious about pursuing applications for permission to appeal against arbitration awards, especially for serious irregularity. There needs to be very cogent, credible reasons for doing so."

The team was led by Ernest Yang and supported by Sharon Leung (Senior Associate).

This information is intended as a general overview and discussion of the subjects dealt with. The information provided here was accurate as of the day it was posted; however, the law may have changed since that date. This information is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation. DLA Piper is not responsible for any actions taken or not taken on the basis of this information. Please refer to the full terms and conditions on our website.

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Publication:Mena Report
Date:Oct 25, 2013
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