A ‘Triple Crown’ arbitral challenge in the professional indemnity insurance context (RSA v Tughans)

Article summary

Insurance & Reinsurance analysis: In this recent judgment, Mr Justice Foxton dealt with a ‘Triple Crown’ arbitral challenge under sections 67, 68 and 69 of the Arbitration Act 1996 (AA 1996) arising out of an arbitration award concerning a solicitors’ firm’s entitlement to payment from an insurer under its professional indemnity cover in respect of its potential liability to another firm of lawyers arising out of the payment of a success fee. Of interest to arbitration practitioners, the judgment (when considering the section 67 challenge) makes clear that the scope of an arbitrator’s jurisdiction is not exclusively defined by the notice of arbitration but can be expanded by the subsequent agreement of the parties or the permission of the arbitrator. Accordingly, the section 67 challenge failed. The judgment is further of interest to insurance practitioners and practising lawyers since it considers as part of the unsuccessful section 69 challenge the scope of standard professional indemnity cover...