How far can a sanctions clause protect a party from having to perform their contractual obligations – and in the case of Iran-related sanctions concerns, how does this interact with the Blocking Regulation? In Mamancochet Mining Limited v Aegis Managing Agency Limited and Others EWHC 2643, the High Court held that, in order to avoid payment of a claim, insurers were required to show that payment would expose them to sanctions under US or EU law. A mere exposure to the risk of a sanction was not sufficient.
In this post, our Insurance Disputes team consider the implications of the decision. Continue reading
The recent Court of Appeal decision in Wood v Sureterm Direct Ltd & Capita Insurance Services Ltd  EWCA Civ 839 gives further guidance on the use of business/commercial common sense as an aid to contractual construction. In reversing the decision at first instance, the Court of Appeal found that an indemnity given by a seller under a share purchase agreement did not cover the buyer’s claim. The court reached this decision on the plain language used in the contract even though the effect was to make the indemnity uncommercial from the buyer’s perspective. Continue reading
New rules requiring insurers, banks and other BIPRU firms to tell the FSA about proposed issues of shares or other capital instruments demonstrate the importance of participating in FSA consultations. Continue reading