Mamancochet Mining Ltd v Aegis Managing Agency Ltd & Ors [2018] EWHC 2643 (Comm) (12 October 2018)

Mamancochet Mining Ltd v Aegis Managing Agency Ltd & Ors [2018] EWHC 2643 (Comm) (12 October 2018)

The sanctions clause in the policy only suspends the insurer's liability to pay while payment would be prohibited by law and thus expose the insurer to sanction. As of the relevant date, payment in sterling is not prohibited by US or EU law, so the Defendants are not exposed to sanction and must pay the claim.

Citation
[2018] EWHC 2643 (Comm)
Parties
Claimant: Mamancochet Mining Limited; Defendants: Aegis Managing Agency Limited and Others
Jurisdiction
England and Wales
Judgment Date
12 October 2018
Procedural Posture
Commercial Court Claim / Judgment After Expedited Trial
Outcome
Claim allowed
Legal Topics
Marine Insurance, Sanctions Clauses, US and EU Sanctions, Interpretation of Insurance Contracts, Blocking Regulation
Insurance Law Sanctions Law Contract Law Marine Insurance Sanctions Clauses US and EU Sanctions Interpretation of Insurance Contracts Blocking Regulation

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Parties

Mamancochet Mining Limited

Claimant

Aegis Managing Agency Limited and Others

Defendants

Procedural Posture

Commercial Court Claim / Judgment After Expedited Trial

Legal Issues

  1. 1 Proper interpretation of the sanctions clause in the insurance policy
  2. 2 Whether payment of the claim would expose the Defendants to US and/or EU sanctions
  3. 3 Whether Article 5 of Council Regulation (EC) No. 2271/96 (Blocking Regulation) prevents Defendants from relying on the sanctions clause

Ratio Decidendi

The sanctions clause in the policy only suspends the insurer's liability to pay while payment would be prohibited by law and thus expose the insurer to sanction. As of the relevant date, payment in sterling is not prohibited by US or EU law, so the Defendants are not exposed to sanction and must pay the claim.

Court Disposition

Claim allowed

Orders

  • Defendants must pay the claim under the Policy if payment is made before 11:59 pm EST on 4 November 2018.