HPOR Servicos De Consultoria Ltda v DryShips Inc and another company

Arbitration – Agency. The majority of an arbitration tribunal had not erred in concluding that the claimant Brazilian special purpose vehicle (HPOR) had to forfeit pre- and post-termination remuneration in respect of an agency agreement entered into with the defendant companies, in circumstances where HPOR had been found to have breached its fiduciary duties to them. The Commercial Court ruled, among other things, that the present case concerned serious breaches and was exactly the kind of case where forfeiture of remuneration was appropriate. However, the court ruled that the majority of the tribunal had erred in apparently considering that the case concerned the remedy of an account of profits.

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