London’s Commercial Court will no longer be entitled to grant anti-suit injunctions to support arbitration provisions with London as their seat, if doing so undermines the jurisdiction of another member state’s court, the European Court of Justice (pictured) ruled this week.

The verdict followed a reference made by the House of Lords in 2007 in the West Tankers case (Allianz SpA (formerly Riunione Adriatica Di Sicurta SpA) and Others v West Tankers Inc (Case C-185/07)), which concerned the prohibition on commencing proceedings in a member state that would be a breach of an arbitration agreement in another.

David Green, president of the London Solicitors Litigation Association, said the decision could potentially affect the attractiveness of London as an arbitration centre.

But Michael Frisby, partner at Guildford firm Stevens & Bolton, said draftsmen will work to minimise the effect of the decision by including detailed arbitration provisions for future contracts.