Dry Log Bulk Carriers v Phaethon International Co SA [2016] EWHC 3798 (Comm) (25 November 2016)

Dry Log Bulk Carriers v Phaethon International Co SA [2016] EWHC 3798 (Comm) (25 November 2016)

The phrase 'additional insurance costs' in the BIMCO Piracy Clause 2009 refers only to premiums payable for insurance cover actually purchased from underwriters, not to sums paid by disponent owners to head owners unless those sums correspond to actual insurance premiums paid. The claim failed for lack of proof that such premiums were paid or required.

Citation
[2016] EWHC 3798 (Comm)
Parties
Claimant: Dry Log Bulk Carriers; Respondent/defendant: Phaethon International Co SA
Jurisdiction
England and Wales
Judgment Date
25 November 2016
Procedural Posture
Appeal Under Section 69 of the Arbitration Act 1996 / Judgment on Appeal From Arbitration Award
Outcome
Appeal dismissed
Legal Topics
Interpretation of BIMCO Piracy Clause 2009, Reimbursement of Additional Insurance Costs, Evidence Required for Insurance Reimbursement, Subcharter Obligations
Commercial Law Maritime Law Arbitration Interpretation of BIMCO Piracy Clause 2009 Reimbursement of Additional Insurance Costs Evidence Required for Insurance Reimbursement Subcharter Obligations

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Parties

Dry Log Bulk Carriers

Claimant

Phaethon International Co SA

Respondent/defendant

Procedural Posture

Appeal Under Section 69 of the Arbitration Act 1996 / Judgment on Appeal From Arbitration Award

Legal Issues

  1. 1 What documentation must a disponent owner provide to obtain reimbursement for additional insurance costs under the BIMCO Piracy Clause 2009?
  2. 2 Does 'additional insurance costs' include sums paid to head owners or only premiums paid to underwriters?

Ratio Decidendi

The phrase 'additional insurance costs' in the BIMCO Piracy Clause 2009 refers only to premiums payable for insurance cover actually purchased from underwriters, not to sums paid by disponent owners to head owners unless those sums correspond to actual insurance premiums paid. The claim failed for lack of proof that such premiums were paid or required.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed; parties to discuss and agree the form of order regarding the answer to the legal question.