Reinsurance Practice and the Law
LITIGATION IN THE COMMERCIAL COURT
JURISDICTION OF THE COMMERCIAL COURT TO HEAR REINSURANCE DISPUTES
Although many disputes in reinsurance matters will be referred to arbitration because there is an arbitration clause in the reinsurance contract, the parties sometimes expressly agree (e.g. in a jurisdiction clause) to have their disputes decided by the English court. Where there is no such agreement, the English court may nevertheless have jurisdiction in respect of a particular dispute under other applicable provisions of the Civil Procedure Rules (“CPR”). If a jurisdiction clause in the reinsurance contract provides for the courts of England and Wales to decide any dispute, proceedings would normally be commenced in the “Commercial Court” as the Commercial Court has jurisdiction to deal with “commercial claims”. CPR rule 58.1(2)(e) provides that a “commercial claim” includes any claim relating to insurance and reinsurance. Given that most UK reinsurers are located in London, most proceedings in respect of reinsurance disputes are commenced in the Commercial Court which is based in the Rolls Building.