Exclusive jurisdiction clauses

The Court of Appeal has, in Konkola Copper Mines plc v Coromin [2006] 1 Lloyd’s Rep 410, upheld the decision of Colman J. In outline, a mine in Zambia owned by KCM was insured under a local Zambian policy issued by Zambian insurers, and also by a global all risks policy issued by Coromin to KCM’s parent company. The Zambian policy provided for disputes to be resolved by the Zambian courts (a clause held by Colman J to be exclusive), and Coromin’s global policy provided for exclusive English jurisdiction. Coromin was reinsured by London market reinsurers. The mine suffered a loss by reason of an avalance. KCM commenced proceedings against the Zambian insurers in Zambia, and against Coromin in England. Coromin sought to join the reinsurers to the English proceedings under CPR Part 20. The reinsurers resisted joinder, arguing that Coromin was in fact the reinsurer of the Zambian insurers, and that the reinsurance of Coromin itself incorporated the Zambian exclusive jurisdiction clause.