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ARTICLE · 10 OCTOBER 2011

Reinsurers win decade-long battle in High Court

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This High Court decision is important for reinsurers and for parties involved in commercial arbitration.

AustraliaInsurance
Mark Lindfield
Mark Lindfield
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On Wednesday, 5 October 2011, the High Court brought to an end a reinsurance dispute which has spanned a decade.1 Mark Lindfield, who advised the reinsurers, explains in this article how they were successful in persuading the court that commercial arbitration in Australia is not merely a matter of private contractual arrangements. Instead, it operates within a statutory scheme that requires arbitrators to provide reasons for their awards when asked to do so by disputing parties.

For different reasons, the High Court's decision is important for the reinsurance industry and for parties involved in commercial arbitration.

What insurers and reinsurers need to know

The High Court has clarified the application of the relief found in s18B of the Insurance Act 1902 (NSW) to reinsurance treaties written prior to 1 September 2009. Because of this dispute, the New South Wales Government enacted regulations clarifying that s18B has no application to reinsurance

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