Mora Shipping Inc of Monrovia, Liberia v Axa Corporate Solutions Assurance Sa & Ors

Mora Shipping Inc of Monrovia, Liberia v Axa Corporate Solutions Assurance Sa & Ors

The natural meaning of the guarantee, construed in its commercial context, is that the cargo insurers have the right to elect whether to pay the shipowners or the average adjusters. There is no express or implied obligation to pay in England. Therefore, the English court does not have jurisdiction under Article 5.1(a) of the Regulation or the Convention.

Parties
Claimant/appellant: Mora Shipping Inc; Defendant/respondent: AXA Corporate Solutions Assurance SA; Defendant/respondent: Le Continent SA; Defendant/respondent: Belgian Marine Insurers SA; Defendant/respondent: Fortis Corporate Insurance NV; Defendant/respondent: Winterthur Schweizerische Versicherungs-Gesellschaft; Defendant/respondent: Generali Assurances Generales
Jurisdiction
England and Wales
Judgment Date
28 July 2005
Procedural Posture
Civil Appeal / Appeal From High Court (commercial Court Division) to Court of Appeal
Outcome
appeal dismissed
Legal Topics
Jurisdiction, General Average Guarantee, Interpretation of Contracts, Place of Performance, Exclusive Jurisdiction Clause
Contract Law Conflict of Laws Insurance Law Jurisdiction General Average Guarantee Interpretation of Contracts Place of Performance Exclusive Jurisdiction Clause

Case Brief

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Parties

Mora Shipping Inc

Claimant/appellant

AXA Corporate Solutions Assurance SA

Defendant/respondent

Le Continent SA

Defendant/respondent

Belgian Marine Insurers SA

Defendant/respondent

Fortis Corporate Insurance NV

Defendant/respondent

Winterthur Schweizerische Versicherungs-Gesellschaft

Defendant/respondent

Generali Assurances Generales

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court (commercial Court Division) to Court of Appeal

Legal Issues

  1. 1 Whether the English court has jurisdiction to entertain an action by the shipowner against cargo insurers under a general average guarantee
  2. 2 Whether the place of performance of the obligation in question was England under Article 5.1(a) of EC Regulation 44/2001 and the Lugano Convention
  3. 3 Who has the right to elect the payee under a contract providing for payment to 'the shipowners or the average adjusters'

Ratio Decidendi

The natural meaning of the guarantee, construed in its commercial context, is that the cargo insurers have the right to elect whether to pay the shipowners or the average adjusters. There is no express or implied obligation to pay in England. Therefore, the English court does not have jurisdiction under Article 5.1(a) of the Regulation or the Convention.

Court Disposition

appeal dismissed

Orders

  • Respondents' costs of appeal summarily assessed in the sum of £9,000
  • Permission to appeal refused