An insurer and a major Finnish public limited company had agreed in a directors’ and officers’ liability policy that a Finnish court had jurisdiction to settle any disputes arising from the insurance contract. The Supreme Court held that the provisions which derogate from the jurisdictional rules in insurance matters must be interpreted strictly. It stated that the insured’s position was protected by mandatory jurisdiction rules.
Partners Matti Komonen and Herman Ljungberg from Hammarström Puhakka Partners, Attorneys Ltd, have written an update on this matter. The update titled “Supreme Court rules insured not bound by jurisdiction clause” has been published in the International Law Office’s newsletter.