- The UK Court of Appeal ruled in favour Amir Soleymanis Dispute with Nifty Gateway over a $650,000 NFT
- The decision is a landmark moment for consumer rights in the UK
- The ruling protects UK internet users from the imposition of automatic foreign arbitration
- Nifty Gateway attempted to circumvent English consumer laws and the jurisdiction of the English court by imposing them new York-based arbitration blocking collector protections under English consumer laws
- Soleimani v Nifty Gateway is the first time the UK Court of Appeal has intervened in a matter that NFTs
LONDON, November 14, 2022 /PRNewswire/ — The UK Court of Appeal has ruled for the first time on a case in which NFTs were involved in a dispute between the digital art collector Amir Soleimani and the online trading platform Nifty Gateway regarding a $650,000 Beeple NFT.
After the Court of Appeal gave Soleymani permission to appeal July 2022the art collector received a positive decision on October 6th, affecting all UK internet users who buy goods online under UK consumer law.
The decision is groundbreaking, protecting consumers from the imposition of automatic foreign arbitration if they want to dispute an online transaction, which happened when Soleymani held an online auction on Nifty Gateway and the new York-based platform began arbitration proceedings in new York.
The trading platform specializing in digital arts and NFTs attempted to circumvent English consumer laws and the jurisprudence of the English courts by a new York-based arbitration, which treats him as a professional as opposed to a consumer, thereby blocking Soleymani’s protection under English consumer laws.
The controversial auction took place May 2021 about beeples abundancean NFT, that etheris co-founder Taylor Gerring bought for $1.2 million on Nifty Gateway. Soleymani finished third in the auction, but Nifty Gateway claimed that his terms required him to pay the grand total of his highest bid in exchange for the third edition of the NFT.
Amir Soleimani says: “Until now, the sale of digital art published as NFTs has functioned as if it were based in international waters – with any sales platform accused of foul play enforcing arbitration in the jurisdiction with the weakest consumer rights and most appropriate for their case. I hope this judgment protects consumers from such manipulation.”
Soleymani’s counsel says: “The case Mr. Soleymani is seeking has far-reaching implications for all consumers who use the internet in that jurisdiction generally. Consumer disputes should be examined and decided in a UK court in public rather than by a foreign tribunal which is under no obligation to respect the protection our government affords to each of us under UK law.”