Stay of proceedings - parties domiciled in convention state - court having jurisdiction to stay proceedings on grounds of forum non conveniensACE Insurance SA/NV v Zurich Insurance Co and Another: CA (Kennedy and Rix LJJ andJacob J): 3 February 2001The claimant and the first defendant lived in Switzerland.

An insurance policy effected by the first defendant contained a jurisdiction clause under which it waived any objection to the state or federal courts of Texas on the ground of improper venue or forum non conveniens.

The first defendant settled a claim by the insured and claimed against the claimant under a reinsurance policy.

The claimant commenced proceedings for a declaration that it had no liability to the first defendant because of breaches of terms in the original insurance contract which were incorporated into the reinsurance contract.

On the first defendant's application, Longmore J stayed the proceedings on the ground of forum non conveniens in favour of proceedings in Texas.

The claimant appealed on the grounds that such a stay was inconsistent with the Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters as enacted by the Civil Jurisdiction and Judgments Act 1982.Alexander Layton QC and James Eadie (instructed by Kennedys) for the claimant.

Iain Milligan QC and Sara Masters (instructed by Diarmuid Brennan & Co, Muswell Hill) for the first defendant.Held, dismissing the appeal, that the court was bound by a previous decision of the Court of Appeal that it was not precluded from staying on grounds of forum non conveniens an action against a defendant domiciled in a state which was party to the Convention; and that that authority could not be distinguished and, since the terms of the Convention had been before the Court of Appeal and no binding authority had been identified as having been overlooked, the authority could be said to have been decided per incuriam.