British- American Insurance (Kenya) Ltd v Matelec Sal & Anor [2013] EWHC 3278 (Comm) (29 October 2013)

British- American Insurance (Kenya) Ltd v Matelec Sal & Anor [2013] EWHC 3278 (Comm) (29 October 2013)

The endorsement to the policy, despite referring to 'reinsurance', applies to both the insurance and reinsurance contracts. The arbitration clause in the endorsement is effective and binding on both BAIC and the contractors in relation to disputes under the insurance contract. The exclusive jurisdiction clause in favour of Kenyan courts is overridden by the arbitration agreement for the purposes of dispute resolution. The contractors are bound to refer disputes to arbitration in London.

Citation
[2013] EWHC 3278 (Comm)
Parties
Claimant: British-American Insurance (Kenya) Ltd; Defendant: Matelec SAL; Defendant: Thika Power Ltd
Jurisdiction
England and Wales
Judgment Date
29 October 2013
Procedural Posture
Arbitration Claim / Judgment on Trial of Preliminary Issues Regarding Arbitration Agreement and Jurisdiction
Outcome
Judgment for the claimant (BAIC) on both preliminary issues.
Legal Topics
Arbitration Agreements, Jurisdiction Clauses, Interpretation of Insurance Contracts, Rectification, Estoppel
Commercial Law Insurance Law Arbitration Arbitration Agreements Jurisdiction Clauses Interpretation of Insurance Contracts Rectification Estoppel

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Parties

British-American Insurance (Kenya) Ltd

Claimant

Matelec SAL

Defendant

Thika Power Ltd

Defendant

Procedural Posture

Arbitration Claim / Judgment on Trial of Preliminary Issues Regarding Arbitration Agreement and Jurisdiction

Legal Issues

  1. 1 Whether BAIC is entitled to refer disputes under the amended policy to arbitration in London
  2. 2 Whether the contractors are bound to refer disputes under the amended policy to arbitration in London
  3. 3 Whether there is a binding agreement to arbitrate between BAIC and the contractors

Ratio Decidendi

The endorsement to the policy, despite referring to 'reinsurance', applies to both the insurance and reinsurance contracts. The arbitration clause in the endorsement is effective and binding on both BAIC and the contractors in relation to disputes under the insurance contract. The exclusive jurisdiction clause in favour of Kenyan courts is overridden by the arbitration agreement for the purposes of dispute resolution. The contractors are bound to refer disputes to arbitration in London.

Court Disposition

Judgment for the claimant (BAIC) on both preliminary issues.

Orders

  • Declaration that there is a binding agreement to arbitrate between BAIC and the contractors under the amended policy.
  • Order that the contractors are bound to refer disputes under the amended policy to arbitration in London.