Forum Non-Conveniens

Ace Insurance SA-NV v Zurich Insurance Company and another (TLR 6 September QBD)

Proceedings were brought in England against defendants domiciled in Switzerland to enforce a contract containing a service of suit clause required disputes to be referred to a court in the US, giving exclusive jurisdiction to the Texas court. Although the Brussels Convention prohibits the application of the doctrine of forum non-conveniens where a defendant is domiciled within a contracting state it does not prevent the doctrine being exercised in favour of a non-contracting state. It would be odd if the law were that a stay was available to a UK defendant but not to a defendant domiciled in any other convention state. Accordingly service of the proceedings was set aside and all further proceedings stayed.