Norwegian Courts Reject Insurance Forum

Tuesday, August 22, 2006
Wikborg Rein, a Norwegian law firm, said Norway's Supreme Court has closed a door to claimants attempting to act against foreign shipowners insuring themselves in Norway. Anders Faerden, a partner in Wikborg Rein's Oslo office, said, "A Mexican insurance company has unsuccessfully brought a claim in Norway against a major Russian shipowner. The claimant tried to sue the Russian company in Norway because it had its P&I cover with Oslo-based Skuld. The claim was based on Section 32 of the Civil Procedure Act, which states that a party domiciled outside Norway can be sued in Norway if it has an asset in the country. The Mexicans argued that the shipowner's membership in Skuld represented a capital asset in itself, as Skuld is a mutual insurance company owned by its members. They would have liked to act against the Russians in a Norwegian court, rather than in Russia, but the Supreme Court rejected the forum shopping. It held that an insurance agreement with a Norwegian mutual insurance company did not in itself constitute a sufficient connection with Norway. It also held that the claimant's allegation that Skuld was jointly liable with the shipowner did not constitute a sufficient connection with Norway."

A valid unpaid claim under an insurance agreement is an asset which is relevant under Section 32. Claims for return of premium or similar claims may also constitute an asset. However, Section 32 cannot apply to parties domiciled in a country which is party to the Lugano Convention. Therefore, Section 32 is not applicable to parties domiciled in the European Union or the European Free Trade Association member states. And in this case, the Supreme Court has also ruled that an insurance agreement with a Norwegian mutual insurance company did not in itself constitute a sufficient connection with Norway.

"Shipowners placing their P&I cover with Norway's two major P&I clubs can sleep a little easier," says Faerden. "Claimants will have to look elsewhere to act against them."

Maritime Reporter October 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


US Senators Introduce Bill to Limit Offshore Drilling

A group of U.S. Senators on the West Coast have introduced a bill Wednesday aiming to prohibit offshore drilling on the outer continental shelf of California, Oregon and Washington.

Danish-South Korean Co-operation Strengthened

The Danish-South Korean Green Growth Alliance met for roundtable talks yesterday. The Minister for Business and Growth's meeting with the South Korean Minister

Seadrill Hopes to See Market Turn in 2017

Offshore rig driller Seadrill is facing another two years in the doldrums but hopes the international rig market could turn around in 2017.   Rig rates have more


Commodity Surge Boosts World Equities; Dollar Falls

Major world stock markets were poised for their biggest weekly advance since 2011 on Friday, as greater investor appetite for riskier assets propelled gains in

Commodities See Biggest Price Jump in 3 Years

Commodities jumped on Friday, headed for their largest weekly gain in more than three years as base metals roared higher after Glencore pledged to slash zinc output

Asia-N.Europe Box Rates Plunge 17 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell 17.3 percent to $259 per 20-foot container (TEU) in the week ended on Friday,

Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Repair Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1291 sec (8 req/sec)