Glencore International AG v Alpina Insurance Company Ltd. & Ors

Glencore International AG v Alpina Insurance Company Ltd. & Ors

Alpina is not entitled to avoid the open cover for either the 1996-97 or 1997-98 policy years; Glencore's losses are covered subject to proof and policy terms; declarations in arrears are valid unless made after a known loss; Glencore's relationship with MTI and blending operations did not require disclosure as they fell within the scope of risks contemplated by the policy; losses are to be aggregated by each misappropriation, not as a single loss.

Parties
Claimant: Glencore International A. G.; Defendants: Alpina Insurance Company Limited and others
Jurisdiction
England and Wales
Judgment Date
20 November 2003
Procedural Posture
Commercial Insurance Dispute / Judgment
Outcome
Alpina not entitled to avoid the open cover; liable to indemnify Glencore for proven losses subject to policy terms.
Legal Topics
Misrepresentation, Non Disclosure, Fraud, Policy Construction, Duty of Utmost Good Faith, Inducement, Valuation of Loss, Aggregation of Losses
Insurance Law Commercial Law Misrepresentation Non Disclosure Fraud Policy Construction Duty of Utmost Good Faith Inducement +2 more

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Parties

Glencore International A. G.

Claimant

Alpina Insurance Company Limited and others

Defendants

Procedural Posture

Commercial Insurance Dispute / Judgment

Legal Issues

  1. 1 Whether Alpina is entitled to avoid the open cover for misrepresentation or non-disclosure
  2. 2 Whether Glencore's losses are covered under the policy
  3. 3 Whether declarations of storage risks with retrospective effect are valid

Ratio Decidendi

Alpina is not entitled to avoid the open cover for either the 1996-97 or 1997-98 policy years; Glencore's losses are covered subject to proof and policy terms; declarations in arrears are valid unless made after a known loss; Glencore's relationship with MTI and blending operations did not require disclosure as they fell within the scope of risks contemplated by the policy; losses are to be aggregated by each misappropriation, not as a single loss.

Court Disposition

Alpina not entitled to avoid the open cover; liable to indemnify Glencore for proven losses subject to policy terms.

Orders

  • Alpina and co-insurers to indemnify Glencore for losses as may be proved at a later stage, subject to policy terms and quantum determination.
  • Further determination of quantum and specific losses to be addressed in subsequent proceedings.