In Starlight Shipping Co v Allianz Marine & Aviation Versicherungs AG (The Alexandros T),1 the Supreme Court held that the English court could hear claims for declarations, damages and indemnities in response to Greek proceedings filed in breach of settlement and jurisdiction agreements. This note concerns its sequel, a decision of the Court of Appeal that determined the substantive issues involved.2 The court came down firmly in favour of the victim of the wrongful foreign proceedings. In doing so, it clarified the applicability of the Fiona Trust3 principles of construction and confirmed the availability of damages/indemnities where agreements not to sue (or not to sue in a foreign court) are breached in another Member State.

The facts of the dispute have been discussed previously in this Quarterly4 and are no doubt familiar to many. Nevertheless, a brief recap may be of assistance. In May 2006, the Alexandros T sank and became a total loss off the coast of Port Elizabeth. A claim was made by the Starlight Shipping Company (“the owners”) against London insurers (“the insurers”)5 under policies governed by English law and subject to the exclusive jurisdiction of the English court. Liability was disputed and proceedings issued in England by the owners in August 2006. The proceedings were subsequently settled and stayed by way of Tomlin order.