HARBOUR ASSURANCE CO (UK) LTD V KANSA INTERNATIONAL INSURANCE COMPANY LTD AND OTHERS

(1991) 1 Re LR 158

Queen’s Bench Division Commercial Court

Before Mr Justice Steyn

Arbitration - Arbitration clause - Illegality - Quota share retrocession agreement containing arbitration clause - Alleged illegality of underlying insurance and reinsurance agreements - Separability principle - Power of arbitrators to hear disputes as to termination, avoidance and validity of agreement containing arbitration clause - Whether power extends to disputes as to illegality of contract - Distinction between initial and supervening illegality - Whether clause separable.