Dassault Aviation SA v Mitsui Sumitomo Insurance Co Ltd

Dassault Aviation SA v Mitsui Sumitomo Insurance Co Ltd

Article 15 of the sale contract prohibits assignments or transfers made by a party, but does not prohibit transfers effected by operation of law, such as subrogation under article 25 of the Japanese Insurance Act. The transfer of claims from MBA to MSI was not made by MBA but occurred by operation of law, and thus was not invalidated by article 15. The arbitral tribunal had jurisdiction to hear MSI's claim.

Parties
Claimant/respondent: Dassault Aviation SA; Defendant/appellant: Mitsui Sumitomo Insurance Co Ltd
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Civil Appeal / Appeal From High Court Judgment Under Section 67 of the Arbitration Act 1996
Outcome
Appeal allowed; arbitral award reinstated
Legal Topics
Non Assignment Clauses, Subrogation, Contractual Interpretation, Jurisdiction of Arbitral Tribunal
Contract Law Arbitration Non Assignment Clauses Subrogation Contractual Interpretation Jurisdiction of Arbitral Tribunal

Case Brief

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Parties

Dassault Aviation SA

Claimant/respondent

Mitsui Sumitomo Insurance Co Ltd

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From High Court Judgment Under Section 67 of the Arbitration Act 1996

Legal Issues

  1. 1 Whether a non-assignment clause in a contract prohibits transfer of claims by operation of law under Japanese Insurance Act article 25
  2. 2 Whether the arbitral tribunal had jurisdiction to hear MSI's claim against Dassault

Ratio Decidendi

Article 15 of the sale contract prohibits assignments or transfers made by a party, but does not prohibit transfers effected by operation of law, such as subrogation under article 25 of the Japanese Insurance Act. The transfer of claims from MBA to MSI was not made by MBA but occurred by operation of law, and thus was not invalidated by article 15. The arbitral tribunal had jurisdiction to hear MSI's claim.

Court Disposition

Appeal allowed; arbitral award reinstated

Orders

  • The appeal is allowed.
  • The award of the arbitrators is reinstated.