ACE EUROPEAN GROUP LTD AND OTHERS V HOWDEN NORTH AMERICA INC AND ANOTHER

[2012] EWCA Civ 1624, Court of Appeal, Lord Justice Maurice Kay, Lord Justice Toulson and Lord Justice Aikens, 6 December 2012

Insurance (liability) - Conflict of laws - Jurisdiction - Negative declaratory relief - Applicable law - Whether England most appropriate forum for hearing of claim - CPR PD 6B, para 3.1(6)

The claimant insurers subscribed to various layers of excess public and products liability insurance in favour of Howden and its subsidiaries during the years 1995 to 2002. Of the 14 policies, eight did not have choice of law or jurisdiction clauses, and the remaining six contained express English law and jurisdiction clauses. The policies were placed in London. Claims against Howden were settled in the US, and Howden commenced proceedings against the insurers in Pennsylvania 2009 and 2011. The insurers took the view that if the policies were held to be governed by the law of a US state, they would be construed as applying to all claims arising from exposure or injury even if occurring outside the duration of the policy, and the insurers in proceedings commenced in September 2011 sought declarations from the English courts to the effect that the policies were governed by English law and that, under English law, the duration clause governed the insurers' liability. The Pennsylvania court ruled in June 2012 that the policies were not, under the conflict of laws rules of Pennsylvania, governed by English law. Thereafter the matter came before Field J, who ruled that it was appropriate for permission to be given to serve Howden outside the jurisdiction.