Legal News

Court of Appeal finds insurance QC validly appointed arbitrator (Allianz v Tonicstar)

Published on: 15 March 2018
Published by: LexisPSL
  • Court of Appeal finds insurance QC validly appointed arbitrator (Allianz v Tonicstar)
  • What are the practical implications of this case?
  • What was the background?
  • What did the Commercial Court decide?
  • What did the Court of Appeal decide?
  • Case details

Article summary

Arbitration analysis: The Court of Appeal has overturned a November 2017 decision of Teare J in the Commercial Court which had followed precedent in holding that an arbitration clause in a standard form insurance policy, requiring arbitrators to have ‘not less than ten years’ experience of insurance or reinsurance’, precluded lawyers and restricted appointments to ‘trade’ arbitrators. The 17 year old first instance decision, which Teare J had followed, was found to be wrong. The clause did not exclude lawyers and if that had been the parties’ intention a clear expression of that intent would have been needed. The Court of Appeal noted that certainty was an important value in commerce but that contracting parties should know that a decision of a court of first instance was not immutable and was capable of being overturned. The application under section 24 of the Arbitration Act 1996 (AA 1996) for the removal of the arbitrator failed. or take a trial to read the full analysis.

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