American International Specialty Lines Insurance Company v Abbott Laboratories [2002] EWHC 2714 (Comm) (28 November 2002)

American International Specialty Lines Insurance Company v Abbott Laboratories [2002] EWHC 2714 (Comm) (28 November 2002)

The court held that the general words of incorporation in the American policies were insufficient to incorporate the London arbitration clause from policy 348.001, particularly as the arbitration clause did not exist at the time the American policies were entered into. The existence of the service of suit (Illinois) clause further reinforced that the parties did not intend to incorporate or give effect to the arbitration clause. As a result, the claimant failed to show to a high degree of probability that there was an arbitration agreement governed by English law or that the Illinois proceedings were vexatious or oppressive. The anti-suit injunction was discharged and permission to serve...

Citation
[2002] EWHC 2714 (Comm)
Parties
Claimant: American International Specialty Lines Insurance Company; Defendant: Abbott Laboratories
Jurisdiction
England and Wales
Judgment Date
28 November 2002
Procedural Posture
Commercial Court Application (anti Suit Injunction and Service Out of Jurisdiction) / Judgment on Applications to Continue Anti Suit Injunction and to Set Aside Service Out of Jurisdiction
Outcome
Anti-suit injunction discharged; permission to serve out of jurisdiction set aside; costs to defendant; expedited detailed assessment ordered; short extension of injunction granted until 2pm the following day.
Legal Topics
Anti Suit Injunctions, Incorporation of Arbitration Clauses, Service of Suit Clauses, Jurisdiction, Proper Law of Contract
Insurance Law Civil Procedure Conflict of Laws Arbitration Anti Suit Injunctions Incorporation of Arbitration Clauses Service of Suit Clauses Jurisdiction +1 more

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Parties

American International Specialty Lines Insurance Company

Claimant

Abbott Laboratories

Defendant

Procedural Posture

Commercial Court Application (anti Suit Injunction and Service Out of Jurisdiction) / Judgment on Applications to Continue Anti Suit Injunction and to Set Aside Service Out of Jurisdiction

Legal Issues

  1. 1 Whether general words of incorporation in an insurance policy are sufficient to incorporate an arbitration clause from another policy
  2. 2 Whether the service of suit (Illinois) clause deletes and replaces the arbitration clause
  3. 3 Whether the English court should grant or continue an anti-suit injunction restraining US proceedings

Ratio Decidendi

The court held that the general words of incorporation in the American policies were insufficient to incorporate the London arbitration clause from policy 348.001, particularly as the arbitration clause did not exist at the time the American policies were entered into. The existence of the service of suit (Illinois) clause further reinforced that the parties did not intend to incorporate or give effect to the arbitration clause. As a result, the claimant failed to show to a high degree of probability that there was an arbitration agreement governed by English law or that the Illinois proceedings were vexatious or oppressive. The anti-suit injunction was discharged and permission to serve...

Court Disposition

Anti-suit injunction discharged; permission to serve out of jurisdiction set aside; costs to defendant; expedited detailed assessment ordered; short extension of injunction granted until 2pm the following day.

Orders

  • Anti-suit injunction discharged
  • Permission to serve out of jurisdiction set aside