ACE Insurance SA-NV v Zurich Insurance Company & Anor [2001] EWCA Civ 173 (2 February 2001)

ACE Insurance SA-NV v Zurich Insurance Company & Anor [2001] EWCA Civ 173 (2 February 2001)

The Court of Appeal is bound by authority to hold that the English court may stay proceedings on forum non conveniens grounds even where the defendant is domiciled in another Lugano Convention contracting state, and that the service of suit clause in the reinsurance contract, once invoked by the commencement of proceedings in Texas, is a decisive factor justifying a stay in favour of the Texas court. The proper law of the reinsurance contract being English does not outweigh the significance of the service of suit clause or the relevance of Texan/New York law to the dispute.

Citation
[2001] EWCA Civ 173
Parties
Appellant/claimant: ACE Insurance SA-NV (formerly Cigna Insurance Company of Europe SA-NV); Respondent/defendant: Zurich Insurance Company; Respondent/defendant: Zurich American Insurance Company
Jurisdiction
England and Wales
Judgment Date
02 February 2001
Procedural Posture
Appeal From Commercial Court (queen's Bench Division) / Court of Appeal Judgment
Outcome
Appeal dismissed; stay of English proceedings upheld
Legal Topics
Forum Non Conveniens, Jurisdiction Under Lugano Convention, Reinsurance Contracts, Service of Suit Clauses, Assignment and Transfer of Insurance Contracts
Private International Law Insurance Law Civil Procedure Forum Non Conveniens Jurisdiction Under Lugano Convention Reinsurance Contracts Service of Suit Clauses Assignment and Transfer of Insurance Contracts

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Parties

ACE Insurance SA-NV (formerly Cigna Insurance Company of Europe SA-NV)

Appellant/claimant

Zurich Insurance Company

Respondent/defendant

Zurich American Insurance Company

Respondent/defendant

Procedural Posture

Appeal From Commercial Court (queen's Bench Division) / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the English court has power to stay proceedings on the ground of forum non conveniens where the defendant is domiciled in another Lugano Convention contracting state
  2. 2 Whether the service of suit clause in the reinsurance contract requires the dispute to be heard in Texas
  3. 3 Whether English or Texan/New York law governs key issues under the reinsurance contract

Ratio Decidendi

The Court of Appeal is bound by authority to hold that the English court may stay proceedings on forum non conveniens grounds even where the defendant is domiciled in another Lugano Convention contracting state, and that the service of suit clause in the reinsurance contract, once invoked by the commencement of proceedings in Texas, is a decisive factor justifying a stay in favour of the Texas court. The proper law of the reinsurance contract being English does not outweigh the significance of the service of suit clause or the relevance of Texan/New York law to the dispute.

Court Disposition

Appeal dismissed; stay of English proceedings upheld

Orders

  • Proceedings in England stayed on grounds of forum non conveniens in favour of Texas
  • Leave to serve Zurich American Insurance Company out of the jurisdiction set aside