Summary
For anti-suit relief, the applicant must show to a high degree of probability that the foreign proceedings breach a binding jurisdiction or arbitration agreement. The court must identify which competing dispute-resolution clause governs by construing the contractual documents as a whole. A later agreement will ordinarily vary or replace an earlier one where the documents and contractual process show that intention, but an express hierarchy clause may preserve the earlier clause where the later documents create confusion or inconsistency. Where the competing clauses cannot sensibly be reconciled, the hierarchy clause must be given effect. If the governing clause is sufficiently clear on the evidence, the court may determine the issue at the interlocutory stage; otherwise, it should give case-management directions for a prompt determination. In the absence of strong reasons against relief, an anti-suit injunction should continue, but its duration may properly be limited pending a jurisdiction challenge or further evidence.
Factual background
The claimant, a Bermuda captive insurer, reinsured property risks with the defendant under two sets of documents. The earlier Slip Policies or Market Reform Contracts contained an exclusive English law and jurisdiction clause. Later Facultative Certificates contained a New York arbitration agreement, New York governing-law provisions and a hierarchy clause stating that the reinsurance slip prevailed in case of confusion.
After a dispute concerning alleged misrepresentation and avoidance of the reinsurance, the defendant commenced or threatened proceedings and arbitration in New York. Foxton J granted an interim anti-suit injunction. The defendant applied to set it aside. The claimant applied to make the injunction final, or alternatively to continue it pending any jurisdiction challenge. The central issue was which of the competing dispute-resolution clauses governed the parties’ dispute.
Held
- Interim relief. The claimant had to establish to a high degree of probability that the relevant binding jurisdiction clause existed. The court’s approach reflected the authorities summarised in Times Trading and applied to exclusive jurisdiction clauses in Catlin. The higher threshold was justified because an anti-suit injunction may in practice be final.
- Construction. The Slip Policy or MRC was a binding contract when issued and contained an exclusive English jurisdiction clause. The Facultative Certificate was a later agreement which, absent the hierarchy clause, would be expected to vary or replace the earlier agreement. However, the natural meaning of the hierarchy clause was that the earlier agreement took precedence where the two documents created confusion. The English jurisdiction provisions therefore prevailed over the later arbitration provisions.
- Alternative arguments. The Scott v Avery condition precedent in the Facultative Certificate was inapplicable because the arbitration provisions were themselves displaced. The proposed construction under which the English clause became merely supervisory was not sensibly arguable. The cases concerning arbitration and jurisdiction clauses in the same agreement did not govern a case involving an express hierarchy clause between successive contractual documents.
- Market evidence. Market practice could potentially assist contractual construction, but the opposing expert evidence was irreconcilable and untested. The judge therefore placed no weight on it at this stage.
- Order. No final injunction was granted. The anti-suit injunction was continued until determination of any challenge by GIC to the English court’s jurisdiction, including any application under s 9 of the Arbitration Act 1996. The parties were encouraged to agree a timetable for that challenge and any further evidence.
The court’s approach to earlier authorities
Available to signed-in members.
Appellate history
This was a first-instance decision. The judgment records that Foxton J had granted interim anti-suit relief on 23 October 2023. The present court continued that relief for a limited period and did not make it final.
Key cases cited
20 authorities cited.
- Enka Insaat Ve Sanayi AS v OOO Insurance Company Chubb [2020] UKSC 38
- Ust-Kamenogorsk Hydropower Plant JSC v AES Ust-Kamenogorsk Hydropower Plant LLP [2013] UKSC 35
- Premium Nafta Products Limited (20th Defendant) and others (Respondents) v. Fili Shipping Company Limited (14th Claimant) and others (Appellants) [2007] UKHL 40
- Donohue v. Armco Inc and Others [2001] UKHL 64
- Société Nationale Industrielle Aerospatiale v Lee Kui Jak [1987] AC 871
- Alexander (representative of the "Property118 Action Group") v West Bromwich Mortgage Company Ltd [2016] EWCA Civ 496
- Sulamerica CIA Nacional De Seguros SA & Ors v Enesa Engenharia SA & Ors [2012] EWCA Civ 638
- HIH CASUALTY AND GENERAL INSURANCE LTD. v. NEW HAMPSHIRE INSURANCE CO. AND OTHERS [2001] EWCA Civ 735 [2001] 2 Lloyd's Rep 161
- The Witz Company LLC & Anor v Edmund Truell [2023] EWHC 2877 (Comm)
- RSM Production Corporation v Gaz du Cameroun SA [2023] EWHC 2820 (Comm)
- LAMIA CORPORATION SRL & OTHERS v TOKIO MARINE KILN SYNDICATES LIMITED & OTHERS [2022] EWHC 3323 (Comm)
- Surrey CC v Suez Recycling and Recovery Surrey Ltd [2021] EWHC 2015 (TCC)
- Catlin Syndicate Ltd v AMEC Foster Wheeler USA Corp [2020] EWHC 2530 (Comm)
- Times Trading Corporation v National Bank of Fujairah (Dubai Branch) [2020] EWHC 1078 (Comm)
- Skype Technologies SA v Joltid Ltd v Kasesalu & Ors [2009] EWHC 2783 (Ch)
- Midgulf International Ltd v Groupe Chimiche Tunisien [2009] EWHC 963 (Comm)
- Emmott v Michael Wilson & Partners Ltd (No 3) [2018] 1 WLR 1118
- NAVIGATION MARITIME BULGARE v. RUSTAL TRADING LTD. AND OTHERS (THE “IVAN ZAGUBANSKI”) [2002] 1 Lloyd's Rep 106
- THE ERAS EIL ACTIONS [1995] 1 Lloyd's Rep 64
- AGGELIKI CHARIS COMPANIA MARITIMA S.A. v. PAGNAN S.p.A. (THE “ANGELIC GRACE”) [1995] 1 Lloyd's Rep 87
Sign in to see how the court treated each authority. A free account is enough.
Cases citing this case
Available to signed-in members.