Masefield AG v Amlin Corporate Member Ltd

Masefield AG v Amlin Corporate Member Ltd

The Claimant was not irretrievably deprived of the cargo at the time of abandonment because recovery was physically and legally possible, and ransom payment was a lawful and effective means of recovery. There was no actual or constructive total loss under the Marine Insurance Act 1906. Payment of ransom is not contrary to public policy and is recoverable as a sue and labour expense.

Parties
Claimant: MASEFIELD AG; Defendant: AMLIN CORPORATE MEMBER LTD
Jurisdiction
England and Wales
Judgment Date
18 February 2010
Procedural Posture
Commercial Insurance Claim / Judgment After Trial
Outcome
Claim dismissed
Legal Topics
Marine Insurance, Actual Total Loss, Constructive Total Loss, Piracy, Ransom Payments, Policy Interpretation
Insurance Law Maritime Law Marine Insurance Actual Total Loss Constructive Total Loss Piracy Ransom Payments Policy Interpretation

Case Brief

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Parties

MASEFIELD AG

Claimant

AMLIN CORPORATE MEMBER LTD

Defendant

Procedural Posture

Commercial Insurance Claim / Judgment After Trial

Legal Issues

  1. 1 Whether the seizure of cargo by Somali pirates constituted an actual total loss under s57(1) of the Marine Insurance Act 1906
  2. 2 Whether there was a constructive total loss under s60(1) of the Act
  3. 3 Whether payment of ransom to recover the vessel and cargo is contrary to public policy and should be disregarded in assessing total loss

Ratio Decidendi

The Claimant was not irretrievably deprived of the cargo at the time of abandonment because recovery was physically and legally possible, and ransom payment was a lawful and effective means of recovery. There was no actual or constructive total loss under the Marine Insurance Act 1906. Payment of ransom is not contrary to public policy and is recoverable as a sue and labour expense.

Court Disposition

Claim dismissed