Effect of submission to jurisdiction

The Brussels Regulation, European Council Regulation (EC) No 44/2001, which lays down the rules governing the jurisdiction of courts within the EU over civil and commercial matters, treats insurance matters somewhat differently from the ordinary run of cases. In essence, an assured can only be sued by an insurer in the courts of the place of the assured’s domicile. In Vienna Insurance Group v Bilas Case C-111/09, [2010] EUECJ, the European Court of Justice (‘ECJ’) has ruled that the right of an assured to rely upon the insurance rules is lost if he submits to the jurisdiction of a court which, but for that submission, would not possess jurisdiction.

Bilas: the facts

Mr Bilas was domiciled in Slovakia. In May 2002 he obtained a policy from Vienna Insurance Group, domiciled in the Czech Republic. On 14 April 2008 PP brought an action against Mr Bilas in the Czech Republic, seeking an order for the payment of CZK1,755 plus default interest, being the sum due under the policy by way of unpaid premium. Mr Bilas did not contest the jurisdiction of the Czech court and entered an appearance to contest the claim on its merits. The defence was dismissed, and judgment was given for the insurers. That raised the question of whether the judgment was to be recognised and enforced outside the Czech Republic.