Jurisdiction(s):
United Kingdom

Strong reasons test in action: English Commercial Court enforces Ukrainian exclusive jurisdiction clauses in aircraft insurance claims, rejecting convenience arguments; contrast with Russia where unfair trial risk justified London proceedings

Published on: 15 July 2024

Published by a Law360 reporter

Legal News

Article summary

Aercap Ireland Capital Designated Activity Company and others v PJSC Insurance Company Universalna and others [2024] EWHC 1365 (Comm)

It is well-established that the English courts will halt proceedings commenced in England contrary to an exclusive jurisdiction clause pointing to a foreign court, unless the claimant demonstrates that there are strong reasons for the claim to continue here. That stance reflects compelling policy considerations favouring the sanctity of forum agreements, including party autonomy, the upholding of bargains and commercial certainty. In this dispute, the court found no such compelling reasons, with Judge Andrew Henshaw deciding that the claims should instead proceed in Ukraine. Having concluded that the exclusive jurisdiction clause was valid and applicable, Judge Henshaw assessed the claimants’ submissions—among them the procedural challenges of trying the case in Ukraine—as no more than foreseeable matters of convenience, which fell short of the strong reasons threshold. This piece reviews the bases on which the claimants, including Aercap, sought to rely and the judge’s analysis of why those bases did not amount to strong reasons. The ruling is considered in the context The court emphasised party autonomy and commercial certainty; procedural difficulties in Ukraine were foreseeable, not exceptional grounds herein to litigate...

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