Youell v Exxon Corporation - US Court of Appeals (Mahoney, McLaughlin and Heaney Ct JJ) - 21 February 1995

Lloyd’s underwriters seeking declarations of non liability in federal court in respect of Exxon Valdez oil spill - Whether action entitled to proceed in federal court notwithstanding the existence of parallel action brought against underwriters in Texas state court

The plaintiff underwriters subscribed to a series of Global Corporate Excess insurance agreement with the defendant (“Exxon”) for the period from November 1988 through October 1989 The agreement insured Exxon and some of its subsidiaries inter alia against marine liabilities, such as fines and penalties for pollution, and also non marine liabilities to third parties. The agreement also covered losses that were “the unforeseen result of an intentional act”. The agreement required arbitration of claims arising in respect of non marine liabilities.