Jurisdiction and territorial limits clauses in insurance policies

In a blog last year (here) we commented on the decision in Hutchinson which involved the effect of a territorial limits clause on jurisdiction in a direct action claim against a foreign insurer in the English courts. It transpires that around the time that Andrews J was hearing submissions on this point in that case, the same insurer was running the same argument in a different claim, again involving a tragic accident in a swimming pool in Spain. Although this second case, Alli-Balogun, reached the High Court on a procedural point (set aside of a default judgment) this month, in this blog we address only the issue of jurisdiction.

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Further guidance on jurisdiction and foreign claims? Aspen Underwriting v Credit Europe Bank NV

Today and tomorrow, the Supreme Court will hear a case arising from the loss of the ship (The Atlantik Confidence) in 2013 in the Gulf of Aden. The UK-based hull underwriters had paid out under a settlement agreement but then sought recovery of the proceeds from the ship owner’s mortgagee, a bank registered in the Netherlands, arguing that the loss was misrepresented to them and actually resulted from a deliberate act by the owners. The settlement agreement contained an exclusive jurisdiction clause in favour of English courts.

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