![CL-2024-000260 - [2025] EWHC 2539 (Comm)](https://backend.juristeca.com/files/emisores/logo_WAai98v.png){kind=logo}
Robin Knowles J, CBE
Robin Knowles J, CBE:
Introduction
On 10 April 2024, an LCIA arbitral tribunal (the “Tribunal”) made an award for US$3.2 million against the Claimants and in favour of the Defendant (the “Award”). The amount awarded was found to be payable as a success fee for services pursuant to a contract by way of letter of engagement signed by the Defendant on 28 May 2018 (the “LOE”).
The LOE contained this provision on arbitration and governing law:
"Any disputes arising out of or in connection with this contract, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration under the LCIA Rules, which Rules are deemed to be incorporated by reference into this clause. The number of arbitrators shall be three. The seat, or legal place, of arbitration shall be London. The language to be used in the arbitral proceedings shall be English. The governing law of the contract shall be the substantive law of England & Wales. The arbitration proceeding and the filings shall remain confidential.”
There is a pending challenge as to the jurisdiction of the Tribunal, brought by the Claimants by arbitration claim dated 8 May 2024 under section 67 of the Arbitration Act 1996 (“the 1996 Act”). This is listed to be heard in late October 2025. The Claimants summarise their case in the section 67 challenge as being that none of them was bound by the LOE, either because the US law firm that signed the letter had no authority to bind the Claimants to it or because the first two Claimants lacked capacity, as a matter of Kuwaiti law, to enter into an arbitration agreement.
By application dated 16 April 2025 the Claimants now apply for permission to amend the arbitration claim form to introduce a further challenge, this time under section 68(2)(g) of the 1996 Act and on the basis of alleged serious irregularity.
The application also seeks orders that the related time limit under section 70(3) be extended and for relief from sanctions. Section 70(3) of the 1996 Act requires an application under section 68 to be brought within 28 days of an award. By the time of the application the period that has lapsed in the present case is just under one year.