Anti-suit injunction granted to project arbitration agreement

In the case of Boris Bannai v Eitan Shlomo Erez (trustee in bankruptcy of Eli Reifman) [2013] EWHC 3689 (Comm), 26 November 2013, the English commercial court denied an application to set aside an anti-suit injunction restraining the defendant from pursuing litigation against the claimant in Israeli courts, where the agreement between the parties contained an arbitration clause.

Under an agreement between the claimant, Mr Bannai, and a bankrupt individual, Mr Reifman, in 2002, Mr Bannai was to account to Mr Reifman for 35 per cent of the assets identified in the agreement as well as 35 per cent of the income derived from those assets. Mr Bannai allegedly failed to make the required contributions in breach of the agreement.

Mr Erez (the trustee) filed a lawsuit against Mr Bannai in the Israeli courts alleging a breach of the agreement, notwithstanding the fact that the agreement, governed by English law, contained an arbitration clause with London as the seat of arbitration…

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