PUBLIC JOINT STOCK COMPANY ("ROSGOSSTRAKH") V STARR SYNDICATE LTD AND OTHERS

[2020] EWHC 1557 (Comm), Queen’s Bench Division, Commercial Court, Mrs Justice Moulder, 17 June 2020

Foreign judgment - Recognition and enforcement - Summary judgment application - Defences based on want of jurisdiction and bias - Whether there was a real prospect that defences were available

In 2012 Kapital, which was the subsidiary of a state-owned insurer, wrote an aviation policy in favour of Sukhoi Civil Aircraft Company, also the subsidiary of a group majority owned by the Russian State. Following a crash, Sukhoi made a claim under the insurance. This was initially resisted, but Kapital made payment and the claimant – which had succeeded to Kapital’s rights – then sought an indemnity from the defendant reinsurers under a contract governed by Russian law and subject to the exclusive jurisdiction of the Russian courts. Some of the subscribing insurers agreed to pay, but others contested their liability on the basis that the flight was a demonstration flight and excluded from cover. The claimant obtained judgment in the Russian courts and applied for summary judgment to enforce the judgment in England. Enforcement was resisted on two grounds: there was no valid jurisdiction clause in favour of the Russian courts; and the decision was biased.