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Home > Legal & Regulatory docs.

General Dynamics United Kingdom Ltd v The State of Libya 2021 UKSC 22 - 25 June 2021

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Country
  • Libyan Arab Jamahiriya
  • United Kingdom
Year

2021

Summary

1. In 2013 General Dynamics United Kingdom Ltd ("General Dynamics") commenced arbitration proceedings against the State of Libya ("Libya") in which it claimed money said to be owing to it under a contract for the supply of communications systems. On 5 January 2016 an ICC arbitral tribunal in Geneva issued an award of £16,114,120.62 plus interest and costs, in favour of General Dynamics ("the award"). Libya has made no payment of the sum awarded.

2. On 21 June 2018, General Dynamics issued an arbitration claim form and made an application without notice pursuant to section 101(2) and (3) of the Arbitration Act 1996 ("the 1996 Act") and Civil Procedure Rules ("CPR") 6.16 and/or 6.28 for (1) permission to enforce the award in the same manner as a judgment or order of the court; (2) judgment to be entered against Libya as prescribed in the award, with interest; and (3) permission to dispense with service of the arbitration claim form, any order made by the court and any other associated documents.

3. On 20 July 2018, at a hearing without notice, Teare J made an order ("the enforcement order") whereby he granted General Dynamics permission to enforce the award in the same manner as a judgment or order of the court and entered judgment against Libya. Teare J also granted General Dynamics permission to dispense with service of the arbitration claim form, any order made by the court and any other associated documents, concluding that exceptional circumstances existed in Libya which justified the order sought. However, he directed that the arbitration claim form, any order of the court and any other associated documents be couriered to two addresses in Tripoli and one address in Paris, and that Libya should have two months from the date of the enforcement order within which to apply to set it aside.

4. By an application notice dated 19 September 2018, Libya applied to vary the enforcement order so as to (1) set aside the order granting permission to dispense with service of the arbitration claim form, the enforcement order and associated documents and the direction that they be couriered to addresses in Tripoli and Paris and (2) require that service on Libya must be effected through diplomatic process as the method of service in section 12 of the State Immunity Act 1978 ("SIA").

5. Following a one-day hearing in the Commercial Court on 18 December 2018, Males LJ, sitting at first instance, on 18 January 2019 set aside those parts of the enforcement order whereby General Dynamics had been granted permission to dispense with service and had been directed to courier the arbitration claim form, the enforcement order and associated documents to addresses in Tripoli and Paris: [2019] 1 WLR 2913. In his judgment Males LJ held that:

...

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