ACE (Formerly Cigna) v. Zurich Insurance Company & Zurich American Insurance Company [2000] EWHC Commercial 69 (31st July, 2000)

ACE (Formerly Cigna) v. Zurich Insurance Company & Zurich American Insurance Company [2000] EWHC Commercial 69 (31st July, 2000)

The Service of Suit Clause entitles Zurich to require litigation in Texas, and proceedings have been properly commenced there. The English court has power to stay proceedings against ZIC and should exercise that power. Leave to serve ZAIC out of the jurisdiction should be set aside. The doctrine of forum non conveniens applies in favour of a non-Contracting State even where the defendant is domiciled in a Convention State.

Citation
[2000] EWHC Commercial 69
Parties
Applicant/defendant: Zurich Insurance Company (ZIC); Applicant/defendant: Zurich American Insurance Company (ZAIC); Claimant/plaintiff: Cigna (the Reinsurers)
Jurisdiction
England and Wales
Procedural Posture
Commercial Insurance/reinsurance Dispute / Application to Stay Proceedings and Set Aside Service Out of Jurisdiction
Outcome
Applications of ZIC and ZAIC granted
Legal Topics
Forum Non Conveniens, Jurisdiction, Service of Suit Clause, Reinsurance, Brussels Lugano Convention
Conflict of Laws Insurance Law Civil Procedure Forum Non Conveniens Jurisdiction Service of Suit Clause Reinsurance Brussels Lugano Convention

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Parties

Zurich Insurance Company (ZIC)

Applicant/defendant

Zurich American Insurance Company (ZAIC)

Applicant/defendant

Cigna (the Reinsurers)

Claimant/plaintiff

Procedural Posture

Commercial Insurance/reinsurance Dispute / Application to Stay Proceedings and Set Aside Service Out of Jurisdiction

Legal Issues

  1. 1 Whether English court should stay proceedings in favour of Texas under Service of Suit Clause
  2. 2 Whether leave to serve ZAIC out of jurisdiction should be set aside
  3. 3 Whether English court has power to stay proceedings against ZIC domiciled in a Convention State

Ratio Decidendi

The Service of Suit Clause entitles Zurich to require litigation in Texas, and proceedings have been properly commenced there. The English court has power to stay proceedings against ZIC and should exercise that power. Leave to serve ZAIC out of the jurisdiction should be set aside. The doctrine of forum non conveniens applies in favour of a non-Contracting State even where the defendant is domiciled in a Convention State.

Court Disposition

Applications of ZIC and ZAIC granted

Orders

  • Stay of proceedings against ZIC granted
  • Leave to serve ZAIC out of the jurisdiction set aside