Case Update: Federal Court Rules on Seat of Arbitration and the Law of the Arbitration Agreement

The Federal Court in its grounds of judgment dated 17 August 2017 has ruled on the Thai-Lao Lignite v Government of the Lao People’s Democratic Republic appeal.

The Question of Law and the Determination

There was one critical question of law that was answered by the Federal Court:

Where the governing law of the contract is foreign law and the seat of arbitration [seat] is Malaysia, does the parties’ stipulation of Malaysia as the seat constitute an express agreement that the law governing the arbitration agreement is Malaysian law?

In answer to this question, the Federal Court answered as follows. Continue reading