Atlasnavios -Navegacao, LDA v Navigators Insurance Company Ltd & Ors

Atlasnavios -Navegacao, LDA v Navigators Insurance Company Ltd & Ors

The exclusion for infringement of customs regulations does not apply where the infringement is itself the manifestation of a malicious act by third parties (here, drug smugglers affixing drugs to the hull), as such a construction would defeat the purpose of the malicious acts cover. The decisions of the Venezuelan courts detaining the vessel were not perverse, wrong, or procured by unwarranted political interference, and thus did not break the chain of causation. The exclusion for failure to provide security does not apply, as the owners made reasonable efforts and reasonable security was not available. Sue and labour expenses are recoverable after the writ agreement, as the obligation to...

Parties
Claimant: Atlasnavios - Navegação, LDA (formerly BNAVIOS - Navegação, LDA); Defendants: Navigators Insurance Company Limited and others (see full list in judgment)
Jurisdiction
England and Wales
Judgment Date
08 December 2014
Procedural Posture
Commercial Insurance Claim (war Risks) / Final Judgment After Full Trial
Outcome
Claim allowed for constructive total loss and sue and labour expenses.
Legal Topics
War Risks Insurance, Policy Exclusions, Constructive Total Loss, Malicious Acts Coverage, Causation in Insurance, Foreign Judicial Process, Sue and Labour Expenses
Insurance Law Maritime Law Conflict of Laws War Risks Insurance Policy Exclusions Constructive Total Loss Malicious Acts Coverage Causation in Insurance +2 more

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Parties

Atlasnavios - Navegação, LDA (formerly BNAVIOS - Navegação, LDA)

Claimant

Navigators Insurance Company Limited and others (see full list in judgment)

Defendants

Procedural Posture

Commercial Insurance Claim (war Risks) / Final Judgment After Full Trial

Legal Issues

  1. 1 Whether the exclusion for infringement of customs regulations in the Institute War and Strikes Clauses applies to losses caused by malicious acts of third parties (drug smugglers)
  2. 2 Whether the decisions of the Venezuelan courts detaining the vessel were perverse, wrong, or procured by unwarranted political interference, thereby breaking the chain of causation for the exclusion
  3. 3 Whether the exclusion for failure to provide security applies

Ratio Decidendi

The exclusion for infringement of customs regulations does not apply where the infringement is itself the manifestation of a malicious act by third parties (here, drug smugglers affixing drugs to the hull), as such a construction would defeat the purpose of the malicious acts cover. The decisions of the Venezuelan courts detaining the vessel were not perverse, wrong, or procured by unwarranted political interference, and thus did not break the chain of causation. The exclusion for failure to provide security does not apply, as the owners made reasonable efforts and reasonable security was not available. Sue and labour expenses are recoverable after the writ agreement, as the obligation to...

Court Disposition

Claim allowed for constructive total loss and sue and labour expenses.

Orders

  • Judgment for the claimant for the insured value of the vessel (USD 14,135,000) and for sue and labour expenses (USD 5,872,392), subject to agreed deductions.
  • Defendants to pay costs.