Elektrim SA v. Vivendi Universal SA

In 1995, Elektrim SA (Elektrim) (plaintiff) also founded a joint venture, Polska Telefonia Cyfrowa Sp. z.o.o. (PTC), with several other companies. In 1999, Elektrim and Vivendi Universal SA (Vivendi) (defendant) entered a joint venture to establish a company, Telco. The joint-venture contract contained an arbitration agreement, and when a dispute arose over the transfer of PTC shares to Telco, arbitration and litigation arose in Polish and other courts. In August 2003, Vivendi entered a request for London Court of International Arbitration (LCIA) arbitration seated in London under English substantive law. In the LCIA arbitration, Vivendi sought monetary damages and other relief against Elektrim. However, after a failed attempt at settlement, Vivendi also commenced arbitration in April 2006 before the International Chamber of Commerce (ICC) in Geneva with Swiss substantive law controlling the arbitration. After the initiation of the ICC arbitration, Elektrim wrote to the LCIA, seeking a stay of proceedings during the ICC arbitration proceeding. The LCIA tribunal rejected Elektrim’s application for a stay. Elektrim filed a motion in English courts seeking an injunction to restrain Vivendi and the other companies from continuing arbitration before the LCIA. Elektrim argued that the injunction should continue until the final determination of an ICC arbitration, which was currently under way in Geneva. Elektrim argued the arbitration was vexatious and onerous to Elektrim, requiring an injunction to protect its legal and equitable rights.