Enka v Chubb [2020] UKSC 38 | ZFZ Postcard Cases

In Enka v Chubb [2020] UKSC 38 the English Supreme Court considered which law governs arbitration agreements.

The Court held that if the parties did not specifically choose the law for the arbitration clause but the container contract includes a choice-of-law provision, then the law selected for the main contract will also apply to the clause.

However, where no choice of law can be discerned – either for the main contract or for the arbitration clause – the law of the seat of arbitration will govern the clause. On the facts in Enka, the parties did not agree on the law for the container contract or for the arbitration clause. Thus, English law applied by default as the law of the seat.

The decision provides welcome clarity on the law governing arbitration clauses. It also contains a handy summary of applicable rules (see para. 170).

Read the decision here.