FIRST RUSSIAN INSURANCE COMPANY. LTD. (IN LIQUIDATION) v. LONDON & LANCASHIRE INSURANCE COMPANY, LTD.

(1928) 31 Ll.L.Rep. 151

CHANCERY DIVISION.

Before Mr. Justice Romer.

Insurance-Reinsurance-Treaties between Russian (plaintiff) insurance company and English (defendant) insurance company-Liquidation of plaintiff company -Balance of accounts-Outward treaty-Risk undertaken by defendants reinsured by plaintiffs-Effect of Soviet Government legislation, prohibiting insurance companies from carrying on business in Russia, upon plaintiffs' business-Right to carry on business outside Russia-Execution of treaty in England and Russia-Manifold acts performed in London-Whether continuance of plaintiffs' business under outward treaties illegal-Power of attorney authorising agents to act on plaintiffs' behalf-Duration of agents' authority-Whether governed by English or Russian law-Doctrine of frustration -Construction-Continuation of contract after date of alleged frustration -Inward treaty-Balance due to defendants -Set-off - Whether plaintiffs' liability extinguished by Soviet decrees -Whether "right" or "remedy" destroyed - Statute of Limitations - Acknowledgment of debt, sufficient to oust statute, by plaintiffs' general manager-Authority to bind plaintiffs- Whether agents' authority determined by decrees.