Ace European Ltd & Ors v Howden Group Ltd & Anor

Permission to serve proceedings seeking declaratory relief out of the jurisdiction requires a real, practical justification for the English court’s involvement. The court must consider whether the declarations have sufficient utility and whether England is clearly the more appropriate forum. Utility may arise even where the foreign court is not bound by the English judgment, including assistance in determining governing law or resisting enforcement elsewhere. Where the proposed declarations are hypothetical, speculative, or rendered unnecessary by an undertaking not to pursue the relevant claims, jurisdiction should not be exercised.

London market insurers sought declarations concerning the governing law and construction of policies covering a North American subsidiary’s asbestos-related liabilities. The insured was already pursuing related coverage proceedings in Pennsylvania. An earlier order permitted service out of the jurisdiction. The second defendant applied to set that order aside, contending that the English proceedings lacked utility and that Pennsylvania was the appropriate forum. The application required the court to assess the jurisdictional gateways, the utility of declaratory relief, and forum conveniens considerations.

1. Permission to serve out. The claimant must establish a good arguable case that the claim falls within a jurisdictional gateway, a serious issue to be tried, and that England is clearly the more appropriate forum. The relevant gateways included