Facts
Bouygues SA together with nine other co-plaintiffs made a claim under a policy of insurance against Red Sea Insurance Co Ltd. Red Sea Insurance was an insurance company incorporated in Hong Kong, but with its head office located in Saudi Arabia. In its counterclaim Red Sea Insurance alleged that one of the co-plaintiffs, PCG, negligently supplied faulty pre-cast concrete building units, and that if it was liable at all, Red Sea Insurance would be subrogated to the claims of the other co-plaintiffs against PCG. PCG applied to strike out that counterclaim. [1]
Red Sea then amended its pleading and claimed that the proper law governing the relations between Red Sea and PCG was the law of Saudi Arabia, and that under Saudi Arabian law, Red Sea had a direct right of action against PCG.
Those claims failed at first instance and in the Court of Appeal because:
- under Hong Kong law the right of action could only arise by way of subrogation once the claim had been paid under the policy of insurance;
- in order succeed in their amended counterclaim Red Sea needed to establish that they had a right of action under both Saudi Arabian law and Hong Kong law to satisfy the double actionability test;
- even though they had a good arguable case that there was a cause of action in tort under Saudi law, because they claim failed under Hong Kong law, it failed the dual actionability test, and therefore the claim was struck out.
Red Sea appealed to the Privy Council.
A tort is a civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits the tortious act. Tort law can be contrasted with criminal law, which deals with criminal wrongs that are punishable by the state. While criminal law aims to punish individuals who commit crimes, tort law aims to compensate individuals who suffer harm as a result of the actions of others. Some wrongful acts, such as assault and battery, can result in both a civil lawsuit and a criminal prosecution in countries where the civil and criminal legal systems are separate. Tort law may also be contrasted with contract law, which provides civil remedies after breach of a duty that arises from a contract. Obligations in both tort and criminal law are more fundamental and are imposed regardless of whether the parties have a contract.
Punitive damages, or exemplary damages, are damages assessed in order to punish the defendant for outrageous conduct and/or to reform or deter the defendant and others from engaging in conduct similar to that which formed the basis of the lawsuit. Although the purpose of punitive damages is not to compensate the plaintiff, the plaintiff will receive all or some of the punitive damages in award.
Champerty and maintenance are doctrines in common law jurisdictions that aim to preclude frivolous litigation:
Personality rights, sometimes referred to as the right of publicity, are rights for an individual to control the commercial use of their identity, such as name, image, likeness, or other unequivocal identifiers. They are generally considered as property rights, rather than personal rights, and so the validity of personality rights of publicity may survive the death of the individual to varying degrees, depending on the jurisdiction.
The doctrine of privity of contract is a common law principle which provides that a contract cannot confer rights or impose obligations upon anyone who is not a party to that contract. It is related to, but distinct from, the doctrine of consideration, according to which a promise is legally enforceable only if valid consideration has been provided for it, and a plaintiff is legally entitled to enforce such a promise only if he is a promisee from whom the consideration has moved.
The Foreign Sovereign Immunities Act of 1976 (FSIA) is a United States law, codified at Title 28, §§ 1330, 1332, 1391(f), 1441(d), and 1602–1611 of the United States Code, that established criteria as to whether a foreign sovereign nation is immune from the jurisdiction of U.S. courts—federal or state. The Act also establishes specific procedures for service of process, attachment of property and execution of judgment in proceedings against a foreign state. The FSIA provides the exclusive basis and means to bring a civil suit against a foreign sovereign in the United States. It was signed into law by United States President Gerald Ford on October 21, 1976.
Rylands v Fletcher (1868) LR 3 HL 330 is a leading decision by the House of Lords which established a new area of English tort law. It established the rule that one's non-natural use of their land, which leads to another's land being damaged as a result of dangerous things emanating from the land, is strictly liable.
In common law jurisdictions, a misrepresentation is a false or misleading statement of fact made during negotiations by one party to another, the statement then inducing that other party to enter into a contract. The misled party may normally rescind the contract, and sometimes may be awarded damages as well.
Economic torts, which are also called business torts, are torts that provide the common law rules on liability which arise out of business transactions such as interference with economic or business relationships and are likely to involve pure economic loss.
In conflict of laws, the choice of law rules for tort are intended to select the lex causae by which to determine the nature and scope of the judicial remedy to claim damages for loss or damage suffered.
Insurance bad faith is a tort unique to the law of the United States that an insurance company commits by violating the "implied covenant of good faith and fair dealing" which automatically exists by operation of law in every insurance contract. In common law countries such as Australia and the UK, the issue is usually framed in the context of a failure of the duty of utmost good faith originating in English insurance law, which does not constitute a tort but rather provides the insured a contractual remedy unique to insurance law.
Tolofson v Jensen, [1994] 3 S.C.R. 1022 is a landmark decision of the Supreme Court of Canada on conflict of laws in tort. The Court held that the primary determiner in selecting a country's law in tort should be the lex loci. The case was decided with Lucas v Gagnon.
Boys v Chaplin [1971] AC 356 is a leading conflict of laws case decided by the House of Lords.
Saudi Arabia v. Nelson, 507 U.S. 349 (1993), is a United States Supreme Court case in which the Court considered the term "based upon a commercial activity" within the meaning of the first clause of 1605(a)(2) of the Foreign Sovereign Immunities Act of 1976.
Sosa v. Alvarez-Machain, 542 U.S. 692 (2004), was a United States Supreme Court case involving the Alien Tort Statute and the Federal Tort Claims Act. Many ATS claims were filed after the Second Circuit ruling in Filártiga v. Peña-Irala created a new common law cause of action for torture under the ATS: “For purposes of civil liability, the torturer has become—like the pirate and slave trader before him—hostis humani generis, an enemy of all mankind.” The Court in Sosa does not find there is a similar cause of action for arbitrary arrest and detention. They wrote that finding new common law causes of action based on international norms would require "a substantial element of discretionary judgment", and explain that the role of common law has changed since ATS was enacted meaning the Court will "look for legislative guidance before exercising innovative authority over substantive law".
Double actionability is a doctrine of private international law which holds that an action for an alleged tort committed in a foreign jurisdiction can be successful in a domestic court only if it would be actionable under both the laws of the home jurisdiction and the foreign jurisdiction. The rule originated in the controversial case of Phillips v Eyre (1870) LR 6 QB 1.
Nudd v Taylor, was a court case, decided in the Supreme Court of Queensland on 30 August 2000. The case concerned Australian Private International Law, specifically giving a Queensland authority to the application of the Moçambique rule.
Spring v Guardian Assurance plc[1994] UKHL 7, [1995] 2 AC 296 is a UK labour law and English tort law case, concerning the duty to provide accurate information when writing an employee reference.
OBB Personenverkehr AG v. Sachs, 577 U.S. ___ (2015), is a decision by the Supreme Court of the United States, holding that the Foreign Sovereign Immunities Act barred a California resident from bringing suit against an Austrian railroad in federal district court. The case arose after a California resident suffered traumatic personal injuries while attempting to board a train in Innsbruck, Austria. She then filed a lawsuit against the railroad in the United States District Court for the Northern District of California in which she alleged the railroad was responsible for causing her injuries. Because the railroad was owned by the Austrian government, the railroad claimed that the lawsuit should be barred by the Foreign Sovereign Immunities Act, which provides immunity to foreign sovereigns in tort suits filed in the United States. In response, the plaintiff argued that her suit should be permitted under the Foreign Sovereign Immunity Act's commercial activity exception because she purchased her rail ticket in the United States.
Persona Digital Telephony Ltd v. Minister for Public Enterprise, Ireland, [2017] IESC 27; was an Irish Supreme Court case in which the Court ruled that third party funding to support a plaintiff's legal costs and disbursements is unlawful.
