Pratt v Aigaion Insurance Company SA

Pratt v Aigaion Insurance Company SA

The warranty clause was ambiguous as to the extent of the requirement for the owner/skipper and crew to be on board 'at all times.' In the context of the contract and the factual matrix, the clause cannot be read literally. The ambiguity must be resolved contra proferentem against the insurer. The warranty is properly construed as requiring the owner/skipper and crew to be on board when the vessel is being navigated or in circumstances where their presence is reasonably required, not at all times when moored. There was no breach of warranty at the time of the fire, so the insurer is liable.

Parties
Claimant/appellant: John Thomas Pratt; Defendant/respondent: Aigaion Insurance Company SA
Jurisdiction
England and Wales
Judgment Date
27 November 2008
Procedural Posture
Civil Appeal (insurance Contract) / Appeal From Admiralty Court Judgment
Outcome
Appeal allowed
Legal Topics
Interpretation of Insurance Warranties, Contra Proferentem Rule, Delimiting Warranties, Marine Insurance Coverage
Insurance Law Contract Law Maritime Law Interpretation of Insurance Warranties Contra Proferentem Rule Delimiting Warranties Marine Insurance Coverage

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Parties

John Thomas Pratt

Claimant/appellant

Aigaion Insurance Company SA

Defendant/respondent

Procedural Posture

Civil Appeal (insurance Contract) / Appeal From Admiralty Court Judgment

Legal Issues

  1. 1 Proper construction of a marine insurance warranty requiring owner/skipper and crew on board 'at all times'
  2. 2 Whether breach of warranty occurred when vessel was unattended during fire

Ratio Decidendi

The warranty clause was ambiguous as to the extent of the requirement for the owner/skipper and crew to be on board 'at all times.' In the context of the contract and the factual matrix, the clause cannot be read literally. The ambiguity must be resolved contra proferentem against the insurer. The warranty is properly construed as requiring the owner/skipper and crew to be on board when the vessel is being navigated or in circumstances where their presence is reasonably required, not at all times when moored. There was no breach of warranty at the time of the fire, so the insurer is liable.

Court Disposition

Appeal allowed

Orders

  • Appellant entitled to recover under the contract of insurance