Jurisdiction Dispute Under Articles 27 And 30 Of EU Regulation 44/2001: Syndicate 980 V Sinco S.A. [2008] EWHC 1842 (Comm.)
In this case, the claimants were three Lloyd's
Syndicates ("Syndicates") for various years of
account between 1999 and 2006. The defendant was a Greek motor
insurance broker ("Sinco") with authority to bind
Greek motor insurances on behalf of the Syndicates. The
defendant's authority to do this derived from binding
authority agreements known as "Binders", which all
contained materially identical provisions including a provision
for English law to apply to the agreements and an exclusive
jurisdiction clause in favour of the English courts.
In November 2006, the Syndicates sought to terminate the
2006 Binder and subsequently issued proceedings against Sinco
in the English Commercial Court in January 2007. The basis of
the claim was that Sinco fraudulently backdated policy
cancellations and generated a fictional return of premium which
it retained for its own account, further that it did not
account to the Syndicates for premium. Sinco was also alleged
to have misrepresented the level of claims under the early
Binders, thereby inducing the Syndicates to enter into Binders
for subsequent years, when they would not otherwise have done
so.
Notwithstanding that the claim form was issued in January
2007, the claimants did not serve it on Sinco nor inform Sinco
of the issue of proceedings. Subsequently in April 2007, Sinco
issued proceedings in Greece against the Syndicates making
claims that were effectively claims in tort and under Greek
statute. As a result, the Syndicates amended the claim form in
June 2007 to state that the English court had jurisdiction
pursuant to EC Regulation 44/2001. They also added a claim for
damages in respect of Sinco's alleged breach of the
exclusive jurisdiction clause by commencing proceedings in
Greece and proceeded to serve the claim form on Sinco.
Sinco sought to stay the English proceedings in respect of
the added head of claim relating to breach of the jurisdiction
clause, pending the determination of the Greek court of its
jurisdiction (the Greek hearing had been delayed due to a court
strike). They argued that the claims brought in Greece were not
covered by the jurisdiction clauses in the Binders, which
covered contractual claims only.
Article 30: court first seised of dispute
Firstly, the Commercial Court considered the effect of
Article 30 of the Regulation, which deems a court to be seised
of an action inter alia "when the document instituting the
proceedings or an equivalent document is lodged with the...
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