(Article from Insurance Law Alert, July/August 2026)
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Holding
The English Commercial Court granted a final anti-suit injunction restraining US-based hospitality companies from pursuing Louisiana litigation against Chubb Bermuda Insurance Ltd, in breach of a London-seated arbitration agreement and awarded Chubb damages arising from the companies’ breach of that agreement. Chubb Bermuda Ins. Ltd v. Fertitta Ent., Inc., et al. [2026] EWHC 1392 (Comm).
Background
Fertitta held USD 200 million in excess coverage issued by Chubb for the 2019–2020 policy year. Following alleged COVID-19 business interruption losses, Fertitta commenced litigation against its insurers in Louisiana and ultimately sought to pursue claims against Chubb there, despite the Chubb policy’s London-seated arbitration clause. Chubb acted quickly and obtained an interim anti-suit injunction (“ASI”) restraining Fertitta from pursuing its claims in Louisiana. After Fertitta repeatedly breached that injunction, the Commercial Court had to determine whether to make the anti-suit injunction final.
Fertitta did not appear in the English proceedings, but maintained that (i) the London arbitration clause was invalid under Louisiana law; (ii) the dispute had no connection to England as the policies covered only U.S. risks and the losses were suffered in the United States; and (iii) Louisiana was the most suitable forum given that the parties, witnesses, and evidence were located in the United States.
Decision
The court granted Chubb a permanent anti-suit injunction. It held that there was a valid arbitration agreement and that Louisiana law was irrelevant to determining the validity of the arbitration agreement given it was governed by English law. As there was a valid arbitration agreement, it was also irrelevant whether the dispute had any connection to England or whether Louisiana might have been a more suitable forum. The court also awarded Chubb damages for the costs of the U.S. proceedings, costs in the English proceedings, and an indemnity for costs incurred in any future U.S. proceedings brought by Fertitta.
Comments
The decision further demonstrates the readiness of English courts to enforce arbitration agreements in insurance policies through anti-suit relief. It also illustrates the potential consequences of pursuing litigation in breach of an arbitration agreement; the breaching party may be required not only to discontinue the foreign proceedings but also to compensate the counterparty for the resulting costs associated with that exercise in England (irrespective of the cost-sharing rules, or lack thereof, in the parallel jurisdiction).