Heesens Yacht Builders BV v Cox Syndicate Management Ltd. & Anor

Heesens Yacht Builders BV v Cox Syndicate Management Ltd. & Anor

Only vessels whose construction or repair commenced during the policy period are covered by the policy for guarantee risks. The Red Sapphire, whose construction began before the policy period, is not covered for guarantee risks, even though delivered during the policy period.

Parties
Respondent/claimant: Heesens Yacht Builders BV; Appellant/defendant: Cox Syndicate Management Limited; Appellant/defendant: Munich Re Capital Limited
Jurisdiction
England and Wales
Judgment Date
06 April 2006
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Construction of Insurance Contracts, Builders Risk Insurance, Guarantee Risks, Policy Interpretation
Insurance Law Contract Law Construction of Insurance Contracts Builders Risk Insurance Guarantee Risks Policy Interpretation

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Parties

Heesens Yacht Builders BV

Respondent/claimant

Cox Syndicate Management Limited

Appellant/defendant

Munich Re Capital Limited

Appellant/defendant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether guarantee risks cover under the 1999 policy applies to vessels whose construction commenced before the policy period but were delivered during it
  2. 2 Interpretation of the risk attachment clauses in the insurance policy

Ratio Decidendi

Only vessels whose construction or repair commenced during the policy period are covered by the policy for guarantee risks. The Red Sapphire, whose construction began before the policy period, is not covered for guarantee risks, even though delivered during the policy period.

Court Disposition

Appeal allowed

Orders

  • Declaration that the yard's guarantee clause liability in respect of the Red Sapphire was not covered by the underwriters’ 1999 policy.