Reinsurance - Negative relief and the European Judgments Conventions

(Agnew v Lansforsakringsbolagens AB, forthcoming in [2000] Lloyd’s Rep IR 3 17)

In Agnew v Lansforsakringsbolagens AB, forthcoming in [2000] Lloyd’s Rep IR 317 , the House of Lords has, by a bare majority, determined that reinsurers are entitled to seek, declaratory relief in the English courts as to their right to set aside a reinsurance contract induced by misrepresentation or non-disclosure, even though the reinsured is domiciled in another EC member state. In so deciding, the House of Lords was required to construe various provisions of the Lugano Convention 1989, which is the equivalent of the Brussels Convention 1968 but with the critical difference that disputes under it cannot be referred to the European Court of Justice for a ruling on a point of law. Until a case involving the same facts arises under the Brussels Convention, the House of Lords’ ruling in Agnew has, therefore, for the time being settled the law in England.