Sulamerica CIA Nacional De Seguros SA & Ors v Enesa Engenharia SA & Ors

Sulamerica CIA Nacional De Seguros SA & Ors v Enesa Engenharia SA & Ors

The proper law of the arbitration agreement is English law, as the seat of arbitration is London. The mediation clause is not a binding condition precedent to arbitration due to lack of certainty and enforceability. The arbitration agreement covers all disputes arising out of or in connection with the policy, including liability and quantum. The arbitration clause prevails over the exclusive jurisdiction clause, which is limited to ancillary matters. The anti-suit injunction should be continued to restrain the Brazilian proceedings.

Parties
Claimants/applicants: Sulamérica Cia. Nacional de Seguros S.A.; Allianz Seguros S.A.; Companhia de Seguros Aliança do Brasil; Mapfre Vera Cruz Seguradora S.A.; Itaú-Unibanco Seguros Corporativos S.A.; Zurich Brasil Seguros S.A.; Defendants/respondents: Enesa Engenharia S.A.; Energia Sustentável do Brasil; Construções e Comércio Camargo Corrêa
Jurisdiction
England and Wales
Judgment Date
19 January 2012
Procedural Posture
Commercial Court Arbitration/anti Suit Injunction / Judgment on Continuation of Interim Anti Suit Injunction
Outcome
Anti-suit injunction continued; costs to follow the event.
Legal Topics
Proper Law of Arbitration Agreement, Anti Suit Injunctions, Multi Tier Dispute Resolution Clauses, Jurisdiction Clauses, Enforceability of Mediation Clauses
Arbitration Conflict of Laws Insurance Law Proper Law of Arbitration Agreement Anti Suit Injunctions Multi Tier Dispute Resolution Clauses Jurisdiction Clauses Enforceability of Mediation Clauses

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Parties

Sulamérica Cia. Nacional de Seguros S.A.; Allianz Seguros S.A.; Companhia de Seguros Aliança do Brasil; Mapfre Vera Cruz Seguradora S.A.; Itaú-Unibanco Seguros Corporativos S.A.; Zurich Brasil Seguros S.A.

Claimants/applicants

Enesa Engenharia S.A.; Energia Sustentável do Brasil; Construções e Comércio Camargo Corrêa

Defendants/respondents

Procedural Posture

Commercial Court Arbitration/anti Suit Injunction / Judgment on Continuation of Interim Anti Suit Injunction

Legal Issues

  1. 1 What is the proper law of the arbitration agreement in the insurance policy?
  2. 2 Is the mediation clause a binding condition precedent to arbitration?
  3. 3 Does the arbitration agreement cover the disputes referred to arbitration?

Ratio Decidendi

The proper law of the arbitration agreement is English law, as the seat of arbitration is London. The mediation clause is not a binding condition precedent to arbitration due to lack of certainty and enforceability. The arbitration agreement covers all disputes arising out of or in connection with the policy, including liability and quantum. The arbitration clause prevails over the exclusive jurisdiction clause, which is limited to ancillary matters. The anti-suit injunction should be continued to restrain the Brazilian proceedings.

Court Disposition

Anti-suit injunction continued; costs to follow the event.

Orders

  • Continuation of the anti-suit injunction restraining the defendants from pursuing Brazilian proceedings contrary to the arbitration agreement.
  • Costs to be paid by the defendants, subject to further submissions if any.