Shipowners' Mutual Protection and Indemnity Association (Luxembourg) v Containerships Denizcilik Nakliyat VE Ticaret A.S. ("Yusuf Cepnioglu")

Shipowners' Mutual Protection and Indemnity Association (Luxembourg) v Containerships Denizcilik Nakliyat VE Ticaret A.S. ("Yusuf Cepnioglu")

The right of direct action conferred by Turkish law is, in substance, contractual and circumscribed by the insurance contract; therefore, the charterers are bound by the English law arbitration clause and an anti-suit injunction is justified to restrain Turkish proceedings contrary to that clause.

Parties
Claimant/respondent: Shipowners’ Mutual Protection and Indemnity Association (Luxembourg); Defendant/appellant: Containerships Denizcilik Nakliyat ve Ticaret A. S.
Jurisdiction
England and Wales
Judgment Date
20 April 2016
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court (commercial Court)
Outcome
Appeal dismissed
Legal Topics
Anti Suit Injunctions, Direct Actions Against Insurers, Arbitration Clauses, Contractual Rights Under Foreign Statutes, Comity, Enforcement of Foreign Judgments
Conflict of Laws Insurance Law Arbitration Anti Suit Injunctions Direct Actions Against Insurers Arbitration Clauses Contractual Rights Under Foreign Statutes Comity +1 more

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Parties

Shipowners’ Mutual Protection and Indemnity Association (Luxembourg)

Claimant/respondent

Containerships Denizcilik Nakliyat ve Ticaret A. S.

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court (commercial Court)

Legal Issues

  1. 1 Whether a right of direct action under Turkish law against an insurer is contractual or independent for the purposes of English law
  2. 2 Whether an anti-suit injunction should be granted to restrain Turkish proceedings in favour of London arbitration

Ratio Decidendi

The right of direct action conferred by Turkish law is, in substance, contractual and circumscribed by the insurance contract; therefore, the charterers are bound by the English law arbitration clause and an anti-suit injunction is justified to restrain Turkish proceedings contrary to that clause.

Court Disposition

Appeal dismissed

Orders

  • Appellant’s appeal is dismissed
  • Appellant to pay Respondent’s costs of the appeal on the standard basis, to be assessed if not agreed