Earlier the Czech Ministry of Health has announced that the review arbitration panel has overturned the first award made in favour of Diag. In a related enforcement proceeding in the US, the District Court for the District of Columbia held that it had no subject-matter jurisdiction to consider Diag's request to enforce the first award because the dispute did not arise from a commercial relationship.
The French Cour
de cassation has refused to enforce a £275 million award in favour of Diag
Human because the award was not yet binding on the parties as the Czech
Republic had exercised its right under the parties' arbitration agreement to
seek review of the award by a second arbitral tribunal. The parties had, rather unusually, provided
that they may submit the first award for review to a newly constituted second
arbitral tribunal. The decision from
France's highest court provides a strong reminder to parties that they will be
held to their bargain when they agree to appellate or review mechanisms in
their arbitration agreement. The Cour de cassation's decision follows
similar earlier decisions from the Austrian and Swiss courts. However, it is reported that the English
courts granted Diag Human an ex parte enforcement
order in 2011 and that the Czech Republic's application to resist enforcement
is listed in May 2014.
See GAR report
See PLC Note re US decision
See GAR report.
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