French law is Civil Law, which is totally different from our Common Law. Moreover, French law is built around “social responsibility”. Their courts can and will do what they perceive to be in the “national interest” and the actual litigants be cursed. Apart from that, there are still plenty of Marxists in France, including on the bench. In protecting our national uniqueness, our courts aren’t going to do as the French do. It’s, thankfully, apples and oranges. France nationalized the insurance sector before, after the Second World War, and they’ll do it again. AXA has to play in their home field, whether they like it or not. The idea that AXA has much choice in the matter is a mirage. It’s not a legal issue. It’s a political issue.
Or, and here’s a possibly really wild concept, they’re paying in accordance with the language of the policy. From the companion/prior report on the case:
“AXA said a small number of its clients in the French hospitality sector were covered for COVID 19-related losses because they bought a special policy. But most clients in the sector did not have that policy and did not quality for compensation, AXA said.”
So, if they bought a special policy that provides coverage, and that is the policy at issue here, then paying the claims is the right thing to do. Civil Law vs. Common Law? A fairy land excuse for people who don’t like to do the work necessary to understand law. Civil Law is statutory law; the law is codified, not Common Law. Common Law just means its based on prior court decisions. Legislatures alter, amend, confirm, or reject such precedent pretty regularly. We have statutory law on policy requirements in almost every state, if not every state, in the US. I don’t recall anyone getting too excited about it, unless they want to offer some lame excuse for Louisiana outcomes.
Bad, bad idea AXA.
Paying BI claims over here would decimate the insurance industry as we know it.
French law is Civil Law, which is totally different from our Common Law. Moreover, French law is built around “social responsibility”. Their courts can and will do what they perceive to be in the “national interest” and the actual litigants be cursed. Apart from that, there are still plenty of Marxists in France, including on the bench. In protecting our national uniqueness, our courts aren’t going to do as the French do. It’s, thankfully, apples and oranges. France nationalized the insurance sector before, after the Second World War, and they’ll do it again. AXA has to play in their home field, whether they like it or not. The idea that AXA has much choice in the matter is a mirage. It’s not a legal issue. It’s a political issue.
Or, and here’s a possibly really wild concept, they’re paying in accordance with the language of the policy. From the companion/prior report on the case:
“AXA said a small number of its clients in the French hospitality sector were covered for COVID 19-related losses because they bought a special policy. But most clients in the sector did not have that policy and did not quality for compensation, AXA said.”
So, if they bought a special policy that provides coverage, and that is the policy at issue here, then paying the claims is the right thing to do. Civil Law vs. Common Law? A fairy land excuse for people who don’t like to do the work necessary to understand law. Civil Law is statutory law; the law is codified, not Common Law. Common Law just means its based on prior court decisions. Legislatures alter, amend, confirm, or reject such precedent pretty regularly. We have statutory law on policy requirements in almost every state, if not every state, in the US. I don’t recall anyone getting too excited about it, unless they want to offer some lame excuse for Louisiana outcomes.
While I don’t know anything about French law, I would hope that Tim is correct – that the policy form is important…. Would love to see it.