Lloyd's Maritime and Commercial Law Quarterly
DAMAGES FOR BREACH OF DISPUTE RESOLUTION AGREEMENTS AND EU PUBLIC POLICY
Andreas Giannakopoulos*
Adnan Khaliq†
Charles Taylor Adjusting v Starlight
(The Alexandros T)
The ECJ’s decision in Charles Taylor Adjusting Ltd v Starlight Shipping Co
1 brings the jurisdictional saga of the Alexandros T one step closer to its conclusion, nearly 18 years after the loss of the vessel. It is also likely to be remembered as the final European setback for the common law’s obligational view of jurisdiction agreements. In brief, the Court held that a judgment of a Member State court awarding damages for breach of a settlement and jurisdiction agreement may be denied recognition under the public policy exception of the Brussels I Regulation2 where the court wrongfully seised is that of another Member State. Although this conclusion appears to follow from the principle articulated in Turner
3 and Allianz,4 reliance on the public policy exception creates a risk of inconsistent application and fails to draw an important distinction. The Court’s characterisation of such awards as ‘“quasi” anti-suit injunctions’ was also ill-advised.
This litigation has already been discussed in two notes in LMCLQ,5 but a brief reminder of the facts may be helpful. The Alexandros T was owned by Starlight Shipping
* Barrister.
† Judicial Assistant in the Court of Appeal (Civil Division).
1. Charles Taylor Adjusting Ltd v Starlight Shipping Co (Case C-590/21) EU:C:2023:633; [2023] Lloyd’s Rep Plus 62 (hereafter “Judgment”).
2. Art.34(1) of the Council Regulation (EC) No 44/2001 of 22 December 2000 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (“the Regulation”).
3. Turner
v Grovit (Case C-159/02) [2004] ECR I-3565; [2004] 2 Lloyd’s Rep 169; [2005] 1 AC 101 (“Turner”).
4. Allianz SpA and Generali Assicurazioni Generali SpA v West Tankers Inc (Case C-185/07) [2009] ECR I-663; [2009] 1 Lloyd’s Rep 413; [2009] 1 AC 1138 (“Allianz”).
5. Y Baatz, “The effectiveness of settlement agreements and English jurisdiction agreements” [2014] LMCLQ 159; James Ruddell, “Monetary remedies for wrongful foreign proceedings” [2015] LMCLQ 9.
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