ROYAL EXCHANGE ASSURANCE vs. KOOMSON

The applicants, Royal Exchange Assurance, were served with third party notice at the request of the defendant who has been sued by the plaintiff claiming ¢72,000 (seventy-two thousand cedis) for loss, pain and suffering as a result of the alleged negligent driving by the defendant of Vauxhall car No. AS 4511 on 16 August 1965; the said car having been insured with the Royal Exchange Assurance against third party risks. [p.680] The Royal Exchange Assurance has applied to the court under section 8 of the Arbitration Act, 1961,1 to stay the third party proceedings. Section 8 of the Act reads: “If any party to an arbitration agreement, or any person claiming through him, commences any legal proceedings in any court against any other party to the agreement, or any person claiming through him, in respect of any matter agreed to be referred, any party to those legal proceedings may apply to that court to stay the proceedings, and that court, if satisfied that there is no sufficie...