Lisbon Court of Appeal | Extension of the Arbitration Agreement to Non-Signatories | Group of Companies Doctrine | Kompentenz-Kompetenz | 11-01-2011 | Case #078

Lisbon Court of Appeal
Date: 11-01-2011
Case Nr. 3539/08.6TVLSB.L1
LINK DGSI

Headline:

The arbitration agreement concluded with a company belonging to the same group of companies only binds the contracting parties, except if a third party later accedes to that agreement.

The arbitral tribunal shall be competent to interpret the arbitration clause in order to ascertain its own competence and the application of the substantive and procedural laws.

 

Summary:

  1. The arbitration agreement concluded with a company belonging to the same group of companies only binds the contracting parties, except if a third party later accedes to that agreement.
  2. It is not an inconsistent result if the contracting party to the arbitration agreement starts arbitration to claim compensation against the other contracting party, and initiates court proceedings against the non-signatory party, a company of the same group of companies.
  3. The arbitral tribunal shall be competent to interpret the arbitration clause in order to ascertain its own competence and the application of the substantive and procedural laws.
  4. It is null and void any waiver of compensation rights, and particularly the goodwill compensation set forth by Law Decree nº 178/86, of 3 June.
  5. The nullity of the arbitration agreement based on the inalienability of the rights at stake, as per Art. 1, no. 1, and Art. 2 of the LAV, refers to situations of “absolute inalienability”, excluding situations of “relative inalienability”, such as those cases involving property rights that may be transacted.
  6. The state court shall dismiss a lawsuit brought by the agent against the principal if the agency agreement contains an arbitration clause.