10/02/2009

FRONT COMOR – Allianz SpA, formerly Riunione Adriatica di Sicurtà SpA, Generali Assicurazioni Generali SpA v West Tankers Inc.

Case C-185/07 Allianz SpA and Generali Assicurazioni Generali SpA v West Tankers Inc, The Front Comor, Judgment of the ECJ, 10 February 2009.  In a judgment that has been much anticipated by the London arbitration community, the ECJ has ruled that it is incompatible with the Brussels Regulation to grant an anti-suit injunction restraining proceedings brought in another EU State on the ground that such proceedings would be contrary to an arbitration clause.  This has been a highly controversial question in which the English courts including the House of Lords (supported in the Front Comor case itself by an opinion of Professor Schlosser and by the United Kingdom Government) have consistently held that such injunctions are not incompatible with the Regulation. That position has now been decisively rejected by the ECJ, following the earlier opinion of the Advocate General.  Stephen Males QC and Sara Masters were instructed by MFB on behalf of the Italian Insurers who challenged the grant of the injunction. Alexander Layton QC was instructed on behalf of the United Kingdom Government by the Treasury Solicitor.