Legislator Rechtsprechung & Gesetzgebung
IEHC 577 ECLI:IE:HC:2009:577 KI-generiert

High Court allows enforcement of Danish arbitration award despite respondent's late procedural objections.

Geschäftsnummer IEHC 577
Gericht / Behörde
Rechtsordnung Irland (IE)
Entscheiddatum
Ausgang Gutgeheissen (Allowed)

Legislator-Zusammenfassung

KI-generiert

The High Court granted the applicant's request to enforce a Danish arbitration award in Ireland. The respondent argued that the award was invalid due to unfair procedures and failure to consider counterclaims, but the court found these defenses were raised too late before the arbitral tribunal. The court held that the respondent could have protected its interests by taking minimal steps and that the burden of proof for counterclaims remained with them, which they failed to meet.

Legislator-Regeste

KI-generiert

s. 7 of the Arbitration Act 1980; s. 41 of the Arbitration Act 1954; The court will enforce a foreign award unless the party opposing enforcement proves specific grounds for refusal, and late procedural objections are inadmissible.

Schlagwörter

KI-generiert
enforcement of foreign awards Arbitration Act 1980 procedural fairness burden of proof late objections New York Convention arbitral tribunal jurisdiction

Zitierte Gesetzesbestimmungen

KI-generiert

Zitierte Rechtsprechung

KI-generiert
Brostrom Tankers v. Factorias Vulcano S.A. [2004] 1 I.R. 191
Re Eurofood IFSC Ltd. [2004] 4 I.R. 370
191 and Re Eurofood IFSC Ltd. [2004] 4 I.R. 370.
Minmetals Germany Gmbh v. Ferco Steel Ltd. [1999] All E.R. (Comm.) 315
in Minmetals Germany Gmbh v. Ferco Steel Ltd. [1999] All E.R. (Comm.) 315.

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Volltext

Neutral Citation Number: [2009] IEHC 577

THE HIGH COURT

2009 169 MCA

IN THE MATTER OF THE ARBITRATION ACTS 1954 – 1998

AND IN THE MATTER OF THE NEW YORK CONVENTION ON THE RECOGNITION AND ENFORCEMENT OF ARBITRAL AWARDS 1958

AND SECTION 7 OF THE ARBITRATION ACT 1980

AND IN THE MATTER OF AN ARBITRATION

BETWEEN

KASTRUP TRAE-ALUVINDUET A/S

APPLICANT

AND

ALUWOOD CONCEPTS LTD.

RESPONDENT

JUDGEMENT of Mr. Justice John MacMenamin dated the 13th day of November, 2009.

1. In this application the applicant (“Kastrup”) seeks:

(i) An order pursuant to s. 7 of the Arbitration Act 1980 and s. 41 of the Arbitration Act 1954 enforcing the award

of the Danish Arbitration Board for the Construction Industry dated 21st April, 2009, in this State in the same

manner as if the said award was a judgment or order of this Honourable Court to identical effect;

(ii) Judgment in the sum of DKK904,063.93, together with DKK48,837.98 for legal costs, DKK44,308 for costs related

to the arbitration tribunal in conducting proceedings, and DKK10,731.24 for costs of translation;

(iii) Interest on the principal sum of DKK759,249.27 from the 2nd December, 2008, was at the rate of 1.8% per

month or part thereof, to the date of payment.

Factual background

2. The applicant is a limited company registered in Denmark. The respondent carries on the business of supplying

Scandinavian window and door products having its registered office in Co. Waterford. Prior to the matters in suit the

applicant and the respondent had an ongoing business relationship. The applicant supplied the respondent with

Scandinavian doors and windows. These were transported to Ireland and used in developments by the respondent. This

relationship operated on the basis of individual contracts between the parties for individual jobs being undertaken by the

respondent. The plaintiff says all of these individual contracts were governed by a set of “Common Terms and Conditions

of Sale”.

3. The said terms and conditions of sale contained at paragraph 11, a “Disputes” section which reads as follows:

“Submissions of question concerning the delivery for the opinion of experts appointed by the court must follow the

rules of the General Conditions of 1992 for Works and Supplies in the Building and Construction Industry

(“Almindelige Betingelser for Arbejde og Leverancer i. Bygge-og Anaegsvirksomhed 1992 )(AB 92) (S. 45).

Disputes between parties falling under AB 92, s. 22, subs. 14 shall be settled in accordance with AB 92, s. 46.

Disputes shall reach a final settlement at the Danish Court of Arbitration for the Building and Construction Industry,

cf. the general conditions for works and supplies in the building and construction industry of 1992 (AB 92) 0, s. 47.”

4. The manner of alleged incorporation of this term into the contractual relationship is outlined later in this judgment. The

business between the plaintiff and the defendant initiated in 2006 continued over a period of several years. It was

substantial, amounting to hundreds of thousands of euro per annum. In 2008 disputes as to payment arose between the

applicant and the respondent company. On 15th August, 2008, Danish solicitors acting for the applicant wrote to the

respondent outlining the level of unpaid invoices which were owing at that time and requesting payment. These invoices

totalled DKK945,372.06.

5. Aluwood had previously purported to raise a number of complaints of alleged defects in the product supplied by the

applicant. By this the respondents sought to justify a refusal to pay for the goods in full. On 9th July 2008, Aluwood

objected that the account furnished by Kastrup did not take into account a number of “contra-charges”. Kastrup wrote

saying “we will have a look at your list and relate to which of your charges according to your terms and conditions of

sale”. The applicant’s solicitor noted these matters in correspondence, but went on to indicate that if a payment of the

outstanding balance was not received within ten days of the receipt of a letter of final demand the applicant would

initiate legal proceedings pursuant to “article 11 of the applicant’s common terms and conditions of sale”.

6. The respondent did not reply to that letter. Specifically, Aluwood raised no question at that time regarding any

reference to the common conditions of sale. The applicant’s solicitors initiated arbitration proceedings in Denmark.

7. While Aluwood contends that it was not on notice of any such terms and conditions from the commencement of the

trading relationship, I find this is not so. In fact, in a letter of 18th August, 2006, which commenced the commercial

relationship, Kastrup indicated that the basis of such business relationship would inter alia be in accordance with “1.

common sales and delivery conditions of VI (VI: The organisation of Danish window producers)”. This same reference was

repeated in a confirmation of the order of 24th August, 2006. The plaintiff and the defendant were both substantially

engaged in a common course of commerce. Aluwood was in no way a simple “consumer” with such rights as a consumer

might enjoy. It is a near universal practice in this type of trade that contractual or commercial relationships would be

subject to some form of arbitration clause. It cannot be said that the existence of such a clause came as a “bolt from the

blue” insofar as the respondent was concerned. If it was, this point was not raised in any correspondence then.

8. On 3rd September, 2008, Kastrup’s lawyers sent a copy of the particularised invoice outlining the principal debt to the

respondent firm. On 6th November, 2008, they wrote to Aluwood’s Irish solicitors indicating that arbitration proceedings

had been initiated against the respondent on 3rd September at the Danish Arbitration Institute, in accordance with

Kastrup’s “Common Terms and Conditions of Sale” which had been agreed between the parties. In that letter Kastrup’s

solicitor indicated that the deadline for filing a defence had been postponed three times from 2nd October, 2008, to 27th

October, 2008, and finally to 6th November, 2008.

9. The respondent’s solicitors contacted Kastrup’s lawyers by way of email on the same date (6th November, 2008). No

defence to the claim had yet been filed. Messrs. Hallys, Aluwood’s solicitors were informed that absent a defence, the

Danish Arbitration Institute would issue its verdict solely on Kastrup’s statement of claim. Aluwood were informed that

such a verdict would be final and directly enforceable against the respondent in Ireland.

10. On 11th November, 2008, Messrs. Hallys objected to the fact that the statement of claim in the Danish arbitration

had been provided to Aluwood in the Danish language, and that their client’s proprietor, Mr. Brennan did not speak that

language. In another letter of the same date, they sought details of the claim in English, and also looked for details of the

common terms and conditions of sale, with evidence that these had been agreed between the parties. They wrote to

similar effect to the Danish Arbitration Institute. On 13th November, 2008, Mr. Hally of that firm wrote again to Kastrup’s

lawyers, repeating that neither he nor his clients spoke Danish, although it was clear that Mr. Dahl, Kastrup’s lawyer

spoke English. He again sought copies of the terms and conditions of sale. He denied that his client was bound by the

conditions or by any arbitration in Denmark. But this denial of the binding nature of the conditions was not particularised

11. Mr. Hally was contacted by the Institute, informing him that the language of the case was Danish, that his client

should find an interpreter, and that it would be advisable to hire a Danish solicitor who could act on behalf of his client.

This was reasonable advice. On 19th December, 2008, he contacted the Institute indicating that he had been in touch

with a Danish solicitor and had asked for his client to be advised in relation to the matter. On 23rd December, 2008, Mr.

Hally wrote to Mr. Brennan again pressing his client for instructions in relation to the claim. He said:

“Would you please let us have your instructions in relation to both matters as soon as possible, bearing in mind that

if something is not done pretty quickly the claim will be dealt with without reference to any representations on your

part.”

This was not only fair warning – it also shows the defendants own understanding of the procedural situation. It also

shows Mr. Hally had not received any substantive instructions in the matter even by late December, 2008.

12. The Institute yet again extended the time for Aluwood to submit a statement of response. It could not have been

fairer. It was indicated that such response should be filed by 16th January, 2009. This was, at minimum, the fourth

extension of time. Furthermore the defendant was yet again informed should it fail to respond within that time limit, the

case would be decided on the basis of the claim which had been furnished already by Kastrup.

13. For financial reasons Aluwood did not consider itself in a position to retain either a Danish lawyer or even a Danish

translator. The fees requested by the Danish lawyer were entirely reasonable. There is no evidence as to the cost of a

translator. I can only assume there was no serious effort made to obtain one. If there was, I would have expected there

to be evidence on this point. This was a matter in the defendant’s hands entirely. Instead, on 2nd February, 2009, Mr.

Brennan, the respondent’s proprietor contacted the Institute indicating that it would not be attending the hearing for the

alleged reason that it was being “held in Denmark and not Ireland”. He furnished written details of Aluwood’s

counterclaims, stated that this work had been in Ireland, but gave no other reason why the arbitration should be in

Ireland rather than Denmark.

14. Mr. Brennan wrote in this letter that his firm could not afford the retainer fee for a Danish solicitor. He indicated that

the level of business between his firm and Kastrup had amounted to €840,000 over the period. Finally, he wrote that

Aluwood would not be attending any hearing in Denmark but would certainly appear at a hearing in Ireland “if we are still

in business”. The impression this letter conveys is a great deal more eloquent about the defendant’s situation than any

mere words.

15. On 12th March, 2009, Aluwood were provided with a copy of the applicant’s claim in Danish. Mr. Hally had repeatedly

complained that the “claim” was in Danish. Mr. Dahl indicated that unless directed by the Arbitration Board he would not

furnish the pleadings in English, as the language of the Arbitration was Danish.

16. On the 26th March, 2009, the Institute contacted Aluwood by letter. It indicated that the Chairman of the Tribunal, a

High Court judge in Denmark, had made the following rulings:

a) That the procedural language for the Arbitration would be Danish;

b) That for this reason the claimant would not be ordered to translate its pleading or any other exhibit into English;

c) That for the same reason the hearing would be in Danish; and

d) If a party wished to have an interpreter present during that hearing they should make arrangements for that

purpose.

The arbitral hearing and a later challenge to jurisdiction

17. The hearing of the Arbitration was fixed for 7th April, 2009, a fact well known to Aluwood. The previous evening, at

17.31 Messrs. Hallys wrote by email on 6th April, 2009, to the Institute. Only then did they raise a point that the

respondent had never submitted to the Danish Arbitration Board having jurisdiction to deal with the dispute. They also

contended that there was no evidence in any documentation to show that both parties had agreed to submit to

arbitration as would be required under article 1 of the 2006 Rules. They suggested that there was no evidence that there

had been a defined legal relationship between the parties. They said that while the claim was being made by Kastrup, in

fact the debt had been assigned to another firm who had no interest in the debt. On this basis, Mr. Hally submitted that

the Arbitration Board had no jurisdiction to deal with this issue. These were all purely technical points raised far too late in

the day.

18. Unsurprisingly, the Danish Arbitration Board for the Construction Industry did not accept any of these very late

written submissions. It proceeded to make an award after the hearing, which award was made in Copenhagen on 20th

April, 2009.

The defendants first lines of defence: not an “award”

19. The first issues for determination are whether (i) there was an “award” made pursuant to an arbitration agreement,

which (ii) does not come within any of the exceptions where a court might refuse to enforce under the New York

Convention 1958 (identified in the Arbitration Act 1980).

20. Aluwood accept that if the award sought to be enforced is an “award” within the meaning of s. 6 (1) of the 1980 Act,

the Court is obliged by the provisions of that Act to recognise and enforce the award, unless they establish one or more

grounds upon which the Court might be entitled to refuse to enforce such award.

21. Section 9 of the Arbitration Act 1980 sets out the grounds upon which a court might refuse to enforce such an

award. The burden of establishing such an award rests upon the party who opposes enforcement. The respondent

accepts that enforcement of an award should not be refused by a court otherwise than pursuant to the grounds as set

out in s. 9 of the Act of 1980. These grounds are exhaustive and the Court must recognise and enforce the award unless

the party opposing enforcement does not prove that one or more of those grounds actually apply.

22. In brief such grounds of opposition may be summarised as:

(a) incapacity of a party;

(b) invalidity of the arbitration agreement under the law of the country or the party subject to it;

(c) absence of proper notice of the appointment of the arbitrator;

(d) an award deals with the difference not contemplated by or falling within the terms of the arbitration;

(e) the composition of the arbitral authority or the procedure adopted therein not being in accordance with the

agreement of the parties or the law of the country where the arbitration took place;

(f) the award not yet being binding on the parties or had been set aside or suspended;

(g) the award being in respect of a matter not capable of settlement by arbitration under the law of the state or

where it would be contrary to public policy to enforce the award;

(h) any matter which although part of the award was not actually submitted to arbitration. Essentially therefore the

grounds are confined to issues of fair procedure, or matters going to jurisdiction or the law of the State where

enforcement is sought.

23. The respondent says that the evidence before this Court establishes that there was never any binding arbitration

agreement in place between the parties and therefore the award was not made in pursuance of an arbitration agreement.

Counsel says the applicant did not draw the respondent’s attention to the existence of the contents of the “Common

Terms and Conditions” that contain the arbitration clause. It is suggested further that the first time the respondent

became aware of these conditions was on 9th July, 2008 when the applicant sent the email to the respondent stating

that the respondent’s list of contra charges would have to be assessed “in accordance with” these conditions. It is said

the respondent did not agree to a contractual relationship between the parties being governed by common terms and

conditions, and, that the conditions were never incorporated into any of the individual contracts between the parties. In

particular, it is said that the parties had not submitted or agreed to the general conditions of the agreement of 10th

December, 1992. I reject this submission as a matter of fact and law.

24. In Cremer (Peter) GMBH v. Co-Operative Molasses Traders Ltd. [1985] I.L.R.M. 564 the respondent opposed an

application for an order enforcing a foreign arbitral award pursuant to the Act of 1980 on the basis that there was no

binding contract in existence between the parties and therefore no binding arbitration agreement.

25. I accept the simple point that, in order for there to be an “award” contained in s. 6.1 of the 1980 Act, a court must

be satisfied that the document or decision sought to be enforced is, within the meaning of that Act, an “award” made in

pursuance of an arbitration agreement under the Act. In such a determination the court should not rely on any decision

reached by the arbitral authority. The court is not debarred from reaching a decision on that issue by reason of the

existence in the award of a decision by the arbitral authority that an arbitration agreement was in existence (per Finlay

C.J. in Cremer).

26. In approaching this issue the following facts are material. I find both the applicant’s initial quotation to the respondent

dated 18th August, 2006 and the order confirmation dated 24th August, 2006, both referred to the common terms. On

the initial quotation there is written next to the word “basis”; a specific reference to the “Common Sales and Delivery

Conditions” of VI, the organisation of Danish window producers. The organisation of Danish window producers are called

“Vindues Industrien in Danish, hence “VI”.

27. The height of the respondent’s case appears to lie in the contention that his attention was not specifically drawn to

the existence or content of these terms and conditions. Aluwood says that it did not receive the “general conditions”

being the Danish provision for the form of arbitration set out in the applicant’s common terms.

28. I am unable to accept the respondent’s submission in this regard. On the plain face of the correspondence the

common terms were incorporated into the contract. It does not lie with the respondent to now assert that these terms

did not form part of the agreement. The objection which the respondents make came at a very late date. Had there been

any suggestion that these terms and conditions came as a real surprise, one would have expected an early objection to

have been made. The respondent is not the situation of an ordinary consumer. Both the applicant and the respondent

were involved in a trading relationship where arbitration agreements of this type are very prevalent if not universal. In

fact there is no direct evidence at all before this Court that the respondent was not on notice of these general conditions

as the affidavit averment to that effect is made not by Mr. Brennan, the respondent’s proprietor but by his solicitor. This

is hearsay and goes to weight. I prefer the plaintiff’s evidence. Had there been a real evidential issue on this point one

would have expected that the best evidence would have been adduced – that is Mr. Brennan’s own averment that he was

unaware of any general conditions of this type. There is no such evidence. On any basis however, I prefer the evidence

of the applicants that the respondent must be taken to have been aware of these general conditions. As a matter of law

moreover I consider that the respondent must be taken to have been on notice of the conditions.

29. In Sweeney v. Mulcahy [1993] I.L.R.M. 289 the plaintiff engaged the defendant to carry out renovations on his house.

The defendant wrote to the plaintiff stating that the conditions of engagement and the scale of minimum charges laid

down by the Royal Institute of Architects of Ireland (R.I.A.I) would apply. The defendant did not send a copy of the

conditions of the R.I.A.I. to the plaintiff but stated that a copy of them was available on request. The plaintiff did not

formally acknowledge the letter in writing but the parties met again and continued with the project. O’Hanlon J. pointed

out that there may have been an explanation as to why the plaintiff did not ask for a copy of these conditions. This was

on the basis that another architect had been retained by the plaintiff and her husband in relation to the same or a similar

project previously and had then provided them with a copy of the conditions of engagement and scale of minimum

charges.

30. In this case the respondent was informed in the first letter as to the existence of the conditions. It was open to

Aluwood to seek copies of these conditions but they did not do so.

31. O’Hanlon J. observed in Sweeney;

“Having regard to the foregoing facts I am of opinion that the agreement between the plaintiff and the defendant

must be regarded as incorporating the R.I.A.I. Conditions of Engagement and Scale of Minimum Charges as this was

expressly put forward by the defendant at the outset as the basis upon which she was prepared to act as architect

in the matter, and the plaintiff allowed the work to proceed thereafter without expressing any dissent.”

32. In Holfeld Plastics Ltd. v. ISAP Omv Group Spa [1999] I.E.H.C. 24, Geoghegan J. considered whether the plaintiff was

bound by an exclusive jurisdiction clause in the defendant’s standard terms. For the purposes of the “notice”, the principle

engaged in this case, I do not think that there is a substantive difference between exclusive jurisdiction clauses,

conditions of engagement setting out minimum charges, or arbitration clauses. In Holfeld the terms had been referred to

and appended to the defendant’s initial quotation but the plaintiff contended it had not read them at the time the

agreement was reached. Geoghegan J. stated at p. 4 of his judgment:

“If it was simply a matter of interpreting the contract in accordance with Irish law, I would have no hesitation in

holding in favour of the defendant. These are two commercial companies dealing at arm’s length, and a company

such as the plaintiff should expect supplier companies such as the defendant to annex to all its sales its own terms

and conditions. Both quotations made it expressly clear that those conditions were to apply and on any reasonably

careful reading of them the plaintiff would have been on notice of the exclusive jurisdiction clause.”

I consider this observation is particularly apropos in the current case.

33. In Stryker Corporation v. Sulzer Metco AG [2006] I.E.H.C. 60 O’Neill J. also had to determine whether the defendant’s

standard terms and conditions had been incorporated into the agreement between the parties in circumstances where

those standard terms contained an exclusive jurisdiction clause for the purposes of article 17 of the Lugano Convention.

He found:

“It is clear in my view … that the necessary agreement may be inferred even in the absence of proof of actual

agreement where the circumstances are such as to demonstrate that in the commercial context in which the

agreement exists, the existence of that consensus or agreement is in those circumstances a probability rather

than otherwise. Thus as was demonstrated in the Holfeld case agreement was inferred even though it was

contended that the general conditions had never been read and hence not agreed to but where these general

conditions were expressly referred to on the face of the contract.”

34. Applying these principles to the instant case, I take the view that even looking at the situation “in the round” (the

test proposed by the respondent), I would be prepared to make similar inferences as those made in Sweeney, Holfeld and

Stryker. On the balance of probability I find that this term formed part of the agreement for the reasons outlined.

35. I am fortified in this finding by the observation made in Credit Suisse Financial Products v. Societe Generale

d’Enterprises [1997] I.L.P.T. 165 C A. There the Court of Appeal of England and Wales held that where the text of the

contract contains an express reference to the relevant conditions, the fact that the other party does not have a copy of

these is irrelevant.

36. The parties entered into a written contract which stipulated that it was to “supplement, form part of, and be subject

to,” the 1992 International Swaps and Derivatives Association Master Agreement. This included a jurisdiction clause

conferring jurisdiction on the English courts. Credit Suisse commenced proceedings in England relying on the jurisdiction

clause. The defendant contested jurisdiction on the basis that the formal requirements of article 17 had not been met. In

the High Court the judge had found that, since the defendant did not have a copy of the Master Agreement in his

possession and readily available to it, the incorporation of that Agreement containing the jurisdiction clause was

insufficient to bring the case within the article. All three judges in the Court of Appeal disagreed. Saville L.J. (as he then

was) gave the only judgment holding:

“To my mind the question is simply whether the express reference in the written contract in the present case

amounts to a clear and precise demonstration that the clause conferring jurisdiction was the subject of consensus

between the parties.”

He continued:

“I have no doubt at all that it does. It seems to me that there is nothing in the (European Case law) which begins

to suggest that where in the written contract itself there is an express incorporation by reference of other written

terms, no consensus is established unless the profferee signing the contract has been supplied with a copy of

those terms, or as the judge put it, he has ‘a copy of those conditions in his possession and readily available to

him’”.

Saville L.J. later concluded:

“It seems to me to be clear from the judgment in Slotti that the court considered that a ‘guarantee’ of real consent

does exist where there is an express reference in the written contract itself by way of incorporation of other

written terms which include a clause in conferring jurisdiction. Indeed given such an express reference, it seems to

me self-evident that the profferee of the written contract, by signing without reservation, has agreed in writing the

incorporated terms (and thus the clause conferring jurisdiction) for the simple reason that the very words of the

signed written contract itself are to that effect. To my mind the fact the profferee did not have a copy of the

Master Agreement in his possession and readily available to him or, as he said in his affidavit, that he thought the

reference to the Master Agreement was a ‘standing clause’(whatever that may mean) is neither here nor there; for

in truth (the profferee) by signing the confirmation, did agree in writing that the terms of the Master Agreement

formed part of the contract he was making.”

37. The principle applied by the Court of Appeal also applies with equal force to the situation here where the respondent

firm traded extensively on foot of the conditions for a period of up to eighteen months prior to raising this point at a late

hour. I therefore reject the respondent’s submission. I hold that the award is enforceable as a matter of Irish law.

The second issue – “unfair procedure” in the arbitration

38. It remains then to deal with the one outstanding issue of “fair procedures”. Under this general heading the respondent

makes three complaints. These are:

(1) that it was deprived of the opportunity to file a defence;

(2) that the Danish Arbitration Board wrongly refused to direct an English translation of the pleadings submitted by

the applicant in March 12th, 2009;

(3) that the same arbitration board wrongly refused to consider the submissions of the respondent when making its

award.

39. The first two complaints hinge entirely around a generalised complaint that the arbitration was conducted through the

Danish language. I reject them. The undisputable facts show that the respondent was furnished with all necessary

documents to meet the claim being made in sufficient time to deal with it, if Aluwood wished to do so. The fact that the

documents were not furnished with an English translation is not contested. The applicant was not obliged to furnish

translations. The respondent was at liberty to have all or any of the documents translated. These were by no means

voluminous. In fact, there is no evidence that the respondent made any effort to have these documents translated at

any time. It is not open to a respondent in circumstances such as these, to bury its corporate head in the sand. In fact I

infer it did not intend to participate in the arbitration at any time. The respondent informed the Arbitration Board to this

effect on 2nd February, 2009. This happened after the respondent’s solicitor had indicated in November/December 2008

he was waiting for a firm of Danish lawyers to revert to him in relation to possible representation. Mr. Brennan was well

aware of the position by 23rd December, 2008. Ultimately the respondent decided not to take up appropriate

representation in Denmark because it was not prepared to pay the retainer in order to protect its interests. It cannot be

said that the financial retainer requested was inordinate. The defendant delayed throughout.

40. I was referred to two authorities said to support the plaintiff’s case on “procedures”. These were Brostrom Tankers v.

Factorias Vulcano S.A. [2004] 2 I.R. 191 and Re Eurofood IFSC Ltd. [2004] 4 I.R. 370. However I consider that the facts

outlined in those cases are so different as to have no materiality to the present case.

41. No legal authority from any jurisdiction has been cited to me to the effect that want of fair procedures would arise in

circumstances where the failing in question might have been immediately remediable by the “aggrieved” party itself taking

just the minimal steps required to protect its interests. Had the respondent wished to engage with the process it could

have done so. The reason why it did not do so was not due to matters beyond its control. It was due to choice.

42. It was also submitted on behalf of the respondent that the Danish Arbitration Board had wrongly refused to consider

the counterclaims of the respondent when making its award. I consider this submission is misconceived and also

unsupported by the facts. The award clearly indicated that the Board considered the respondent’s counter claims, made

in correspondence, but simply found that they were not proven in evidence. The burden of proof for any claim in an

arbitration made by the respondent is obviously on that respondent. The Arbitration Board simply stated that the

respondent had not proved the claims. This was the fact. There was no evidence before the Board. Therefore the claim

could not be allowed. The principle of “he who asserts must prove” is applicable. Furthermore, as is evident from the

award, the written counterclaims were considered during the oral hearing as the applicant itself accepted two of the

counterclaims, in fact even lowering its own claim because of these counterclaims – a matter mentioned directly in the

arbitration award.

43. Finally, it is to be noted that there is an onus upon the party opposing enforcement to prove to the Court that it

raised grounds upon which it resists enforcement at the earliest opportunity before the arbitral forum. (See the judgment

of Colman J. in Minmetals Germany Gmbh v. Ferco Steel Ltd. [1999] All E.R. (Comm.) 315. In this case the lateness of all

the “procedural” claims raised by the respondents before the Danish Arbitration Board speak for themselves. It was too

late. The issue as to jurisdiction was raised at the eleventh minute of the eleventh hour on the evening prior to the

arbitration itself. The point was devoid of merit. I would imagine the force of such a claim before the Arbitrator was in

reverse ratio to its timeliness. The same observation is true here also. The respondent fails in its defences. The applicant

is entitled to the relief it seeks.