Raiffeisen Zentralbank Osterreich Ag v An Feng Steel Co. Ltd. & Ors [2001] EWCA Civ 68 (26 January 2001)

Raiffeisen Zentralbank Osterreich Ag v An Feng Steel Co. Ltd. & Ors [2001] EWCA Civ 68 (26 January 2001)

The effect of the assignment of insurance proceeds as between the assignee (RZB) and the insurers is governed by English law, pursuant to Article 12(2) of the Rome Convention, as both the insurance contract and the assignment were expressly subject to English law. The assignment and notice given to the insurers were valid and effective under English law, and the Appellants' French attachments do not override RZB's entitlement as assignee under English law for the purposes of this issue.

Citation
[2001] EWCA Civ 68
Parties
Respondent/claimant: Raiffeisen Zentralbank Österreich AG; Appellants/11th 15th Defendants: An Feng Steel Co. Limited & Others
Jurisdiction
England and Wales
Judgment Date
26 January 2001
Procedural Posture
Appeal From QBD (longmore J.) / Court of Appeal (civil Division) Judgment
Outcome
Appeal dismissed; summary judgment for RZB affirmed with declarations appropriately limited to the issues determined.
Legal Topics
Assignment of Insurance Proceeds, Applicable Law Under Rome Convention, Priority of Claims to Insurance Proceeds, Effect of Foreign Attachment Orders
Private International Law Conflict of Laws Insurance Law Assignment of Insurance Proceeds Applicable Law Under Rome Convention Priority of Claims to Insurance Proceeds Effect of Foreign Attachment Orders

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Parties

Raiffeisen Zentralbank Österreich AG

Respondent/claimant

An Feng Steel Co. Limited & Others

Appellants/11th 15th Defendants

Procedural Posture

Appeal From QBD (longmore J.) / Court of Appeal (civil Division) Judgment

Legal Issues

  1. 1 What law governs the effectiveness of an assignment of insurance proceeds as between assignee and debtor?
  2. 2 Does English or French law determine priority between an assignee and a third-party attaching creditor?
  3. 3 Does Article 12(2) of the Rome Convention apply to the assignment of insurance proceeds under an English law policy?

Ratio Decidendi

The effect of the assignment of insurance proceeds as between the assignee (RZB) and the insurers is governed by English law, pursuant to Article 12(2) of the Rome Convention, as both the insurance contract and the assignment were expressly subject to English law. The assignment and notice given to the insurers were valid and effective under English law, and the Appellants' French attachments do not override RZB's entitlement as assignee under English law for the purposes of this issue.

Court Disposition

Appeal dismissed; summary judgment for RZB affirmed with declarations appropriately limited to the issues determined.

Orders

  • Declaration that notice of assignment was validly and effectively given to the insurers.
  • Declaration that as from 17 September 1997, Five Star had no right, title, or interest in the vessel's insurances, particularly that with the insurers.