Autumn 2007

Reinsurance and International Risk team (RIRt) Notes 

• What will 2008 hold for Reinsurers?
• EU inquiry into business insurance - the end of the beginning?
• Bigger floods?
• Class actions over here....?
• Follow clauses no coverage guarantee
• Preparing for Solvency II
• Arbitration: still a valid means of resolving disputes?
• Arbitration update
• Events and seminars         

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October 2007 

Asbestos Claims: Pleural Plaques claims: the door left ajar?

Johnston v NEI International Combustion Limited, Rothwell v Chemical and Insulating Company Limited and others, Topping v Benchtown Limited, Grieves v FT Everard & Sons and others [2007] UKHL 39

On Wednesday 17th October 2007 the House of Lords ruled that patients diagnosed with pleural plaques, an asbestos related condition, were not entitled to compensation. This ruling overturns a number of first instance decisions from the early 1980s that had established pleural plaques as compensatable damage.

Whilst the ruling has been criticised as being unduly harsh, there are compelling legal and factual grounds in support of the Law Lords' decision.

18 October 2007

(1) Johnston v NEI International Combustion Ltd 

(2) Rothwell v Chemical & Insulating Co Ltd 

(3) Topping v Benchtown Ltd[Conjoined Appeals]

(4) Grieves v F.T. Everard & Sons

House of Lords - 17 October 2007

Yesterday the House of Lords handed down its judgment in the above-mentioned test cases concerning liability for pleural plaques.  

The five Law Lords unanimously held that the Court of Appeal had been right to rule that claimants with pleural plaques cannot sue for damages in tort.

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October 2007

A "fresh start" : House of Lords back arbitration

Premium Nafta Products Limited & Others v Fili Shipping Company Limited & Others [2007] UKHL 40

In a decision that is strongly supportive of arbitration, the House of Lords has ruled that generally worded arbitration clauses should be interpreted broadly and that the parties to such arbitration clauses must be regarded as having chosen arbitration as a one-stop method of determination of all disputes arising out of their relationship, including disputes regarding the very validity of their contract.

15 October 2007

Korea National Insurance Corporation v Allianz Global Corporate & Speciality AG and Ors

Commercial Court - Steel J - 24 July 2007

The Facts 

The Claimant, an insurance company incorporated in the Democratic People's Republic of Korea, claimed the sum of €44,310,523 against the reinsurers, represented by the Defendant, being the sum due under a judgment given by the North Korean courts.

The Claimant insured Air Koryo (a North Korean airline) under an aviation hull and liability policy, for the period from 1 November 2004 to 31 October 2005. The policy was subject to North Korean law and jurisdiction.

The contract of reinsurance covered the same period. It contained an express 'claims control' clause, and was also subject to North Korean law and jurisdiction. 

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