Posts Tagged [2018] EWHC 3259 (Comm)

Griffin v Varouxakis: (obiter) rejection of jurisdiction on the basis of indirect damage, ditto discussion of Brussels I’s insurance title.

In [2018] EWHC 3259 (Comm) Griffin v Varouxakis, Males J gives an obiter masterclass in the (ir)relevance of indirect damage for the establishment of jurisdiction.

Objections to jurisdiction where formally dismissed on the basis that they were made late according to the relevant CPR rules. Yet Males J went on to discuss at length and obiter whether, if such objection had been made timely, it would have been successful. He suggest it would partially have been successful, for those parts of the claim based on indirect damage, and directed against a Greece domiciled defendant.

(Of immediate note is the contrast with Four Seasons v Brownlie: here indirect damage was not immediately dismissed as a jurisdictional trigger however in that case jurisdiction was to be assessed on the basis of residual English rules; Brussels I did not apply).

Claimant insurance company (“Griffin”) contends that as a result of the defendant’s conduct it has lost the right to claim general average contributions which were payable and would have been paid in London, so that the damage it has suffered was suffered in the London jurisdiction. The defendant disputes this analysis, contending that the damage in question was suffered either in the place where the underlying contract was broken or alternatively in Guernsey where Griffin is domiciled and where it would ultimately have received any general average payments. Alternatively he contends that Griffin’s claim is a “matter relating to insurance” within the meaning of Section 3 of Chapter II of the Regulation so that, in accordance with Article 14, he can only be sued in the courts of Greece where he is domiciled.

The Court reviews relevant case-law on Article 7(2) and applies it to two separate claims (particulars of which are in para 28 and para 29): for one of them only, direct damage would have been suffered in England; for the other, in Oman.

Finally at 92 ff and equally obiter Males J concludes that the litigation is not a “matter relating to insurance” within the meaning of Section 3 of Chapter II of the Recast Brussels Regulation. At 96: ‘Not all claims brought by a claimant who happens to be an insurer comprise matters relating to insurance.’ at 98: ‘neither of Griffin’s claims are matters relating to insurance. The fact that Griffin is an insurer forms part of the background to the claim and explains why the harm which Griffin has suffered is the loss of an ability to enforce a subrogated right (although insurers are not the only people who sometimes have the benefit of rights of subrogation), but that is all. In all other respects the nexus between the claim in tort and the policy is tenuous. Determination of the claim requires no consideration of the terms of the policy, which was scarcely looked at during the hearing.’ This latter suggestion goes along the Granarolo etc. judgments on the distinction between contract and tort.

Geert.

(Handbook of) EU Private international law, 2nd ed. 2016, Chapter 2 Heading 2.2.11.2, Chapter 4, Heading 4.4 .

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