Case Details

Munchener Ruckversicherungs Gesellschaft (T/A Munich Reinsurance Co) v. Commonwealth Insurance Co. (HC)

[2004] EWHC 914 (Comm)

Colin Wynter appeared for reinsurers in this jurisdiction/forum/applicable law reinsurance dispute in which the Commercial Court had to determine whether a dispute involving (a) a German reinsurer, (b) a Canadian reinsured/insurer, (c) a USA insured, (d) a Mexican property risk location, and also involving (e) a USA producing broker and (f) an English placing broker, should be heard and determined in England or in the in the USA (California). Following a major fire loss in Juarez, Mexico, reinsurers issued, in the English Courts, a claim for a declaration of non-liability in respect of their reinsurance of Commonwealth (a Canadian insurance/reinsurance company). The contract of reinsurance, despite being a contract between a German reinsurer and a Canadian reinsured, had been made in London. The risk had been brought to the London market by brokers based in California, USA. Commonwealth, issued its own parallel proceedings, in California, against reinsurers, and also issued proceedings against the Californian brokers. The Californian brokers could not, without their agreement, be made a party to the English proceedings, as reinsurers had no claim against them. The question for the Commercial Court was whether the presence of the brokers in the Californian action made the Californian courts the more convenient forum ("forum conveniens").

Morison J. ruled that it did not, and ruled that England was the appropriate forum for the determination for the dispute between reinsurers and their reinsured.