TONICSTAR LTD V ALLIANZ INSURANCE PLC AND ANOTHER

[2017] EWHC 2753 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Teare, 6 November 2017

Arbitration - Reinsurance - Qualification of arbitrator - Whether arbitrator should be removed - Arbitration Act 1996, sections 24 and 30

Under an arbitration clause in a reinsurance agreement, each party was to appoint an arbitrator within 30 days. The clause provided that: "Unless the parties otherwise agree the arbitration tribunal shall consist of persons with not less than ten years' experience of insurance or reinsurance". The respondents appointed a highly-respected and experienced QC as their arbitrator. The appointment was challenged on the strength of an unreported case, Company X v Company Y, decided in 2000 which construed the words as requiring experience in the business of insurance and reinsurance and not merely experience as a lawyer in handling insurance and reinsurance disputes.