ROYAL BOSKALIS WESTMINSTER N.V. AND OTHERS v. TREVOR REX MOUNTAIN AND OTHERS [1997] EWCA Civ 1140 (28th February, 1997)

ROYAL BOSKALIS WESTMINSTER N.V. AND OTHERS v. TREVOR REX MOUNTAIN AND OTHERS [1997] EWCA Civ 1140 (28th February, 1997)

The waiver of claims under the Finalisation Agreement, obtained under duress and involving illegal payments under Dutch and Swiss law, is unenforceable and does not constitute a recoverable expense under the sue and labour clause of the marine insurance policy. No effective loss was suffered as the waiver would not be upheld in arbitration due to duress and illegality. The appeal is allowed and the cross-appeal dismissed.

Citation
[1997] EWCA Civ 1140
Parties
Respondents: Royal Boskalis Westminster N.V. and Others; Appellants: Trevor Rex Mountain and Others
Jurisdiction
England and Wales
Procedural Posture
Appeal (civil) / Appeal From High Court (queen's Bench Division, Commercial Court) on Preliminary Questions of Liability
Outcome
Appeal allowed, cross-appeal dismissed
Legal Topics
Marine Insurance, Sue and Labour Clause, Illegality, Duress, Public Policy, Enforceability of Foreign Contracts
Insurance Law Contract Law Conflict of Laws Marine Insurance Sue and Labour Clause Illegality Duress Public Policy +1 more

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Parties

Royal Boskalis Westminster N.V. and Others

Respondents

Trevor Rex Mountain and Others

Appellants

Procedural Posture

Appeal (civil) / Appeal From High Court (queen's Bench Division, Commercial Court) on Preliminary Questions of Liability

Legal Issues

  1. 1 Whether waiver of claims under duress constitutes a recoverable sue and labour expense under marine insurance policy
  2. 2 Whether the waiver is enforceable given duress and illegality under Dutch and Swiss law
  3. 3 Whether loss claimed is recoverable under the policy given public policy and illegality

Ratio Decidendi

The waiver of claims under the Finalisation Agreement, obtained under duress and involving illegal payments under Dutch and Swiss law, is unenforceable and does not constitute a recoverable expense under the sue and labour clause of the marine insurance policy. No effective loss was suffered as the waiver would not be upheld in arbitration due to duress and illegality. The appeal is allowed and the cross-appeal dismissed.

Court Disposition

Appeal allowed, cross-appeal dismissed

Orders

  • Plaintiffs' claim under the sue and labour clause dismissed
  • No recovery for the value of claims waived under the Finalisation Agreement