ABSTRACT

Chapter 4 focuses on aggregation mechanisms that feature the unifying factor of ‘event’ and the linking phrases of either ‘arising out of’ or ‘arising from’. As identified in chapter 3, in English law, there is substantial legal uncertainty as regards the causal requirements associated with both the relevant unifying factor and the respective linking phrase.

In order to reduce this legal uncertainty, English courts have developed the so-called unities test. Chapter 4 scrutinizes this test and shows that the latter itself is a source of legal uncertainty. The chapter also discusses hours clauses and sole judge clauses. It is argued that under English law the determination whether a plurality of losses aggregate under an event-based aggregation mechanism comes down to a pure exercise of judgment. The chapter closes with an overview of Article 5.2 PRICL that provides for an alternative to the English law position.