Coromin Ltd v AXA Re & Ors [2007] EWHC 2818 (Comm) (30 November 2007)

Coromin Ltd v AXA Re & Ors [2007] EWHC 2818 (Comm) (30 November 2007)

The EMB Extension applies to the Motor as a discrete item of machinery, not the Mill as a whole. The four conditions for attachment under the EMB Extension were satisfied prior to the incident, as evidenced by contractual documentation and factual handover. Therefore, Coromin is entitled to indemnity for property damage and business interruption losses (excluding those relating to the Molybdenum plant, which was not insured at the relevant time).

Citation
[2007] EWHC 2818 (Comm)
Parties
Claimant: Coromin Limited; Defendant: AXA Re; Defendant: Societe Commerciale de Reassurance; Defendant: Partner Re SA; Defendant: Caisse Centrale de Reassurance; Defendant: Arch Reinsurance Limited (Bermuda); Defendant: Axis Re Limited; Defendant: XL Insurance Company Limited; Defendant: Endurance Worldwide Insurance Limited
Jurisdiction
England and Wales
Judgment Date
30 November 2007
Procedural Posture
Commercial Insurance/reinsurance Claim / High Court Judgment (first Instance)
Outcome
Claim allowed in part
Legal Topics
Reinsurance Coverage, Policy Construction, Business Interruption, Property Damage, Defective Design Exclusion, Electrical or Mechanical Breakdown Extension (emb Extension)
Insurance Law Commercial Law Reinsurance Coverage Policy Construction Business Interruption Property Damage Defective Design Exclusion Electrical or Mechanical Breakdown Extension (emb Extension)

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Parties

Coromin Limited

Claimant

AXA Re

Defendant

Societe Commerciale de Reassurance

Defendant

Partner Re SA

Defendant

Caisse Centrale de Reassurance

Defendant

Arch Reinsurance Limited (Bermuda)

Defendant

Axis Re Limited

Defendant

XL Insurance Company Limited

Defendant

Endurance Worldwide Insurance Limited

Defendant

Procedural Posture

Commercial Insurance/reinsurance Claim / High Court Judgment (first Instance)

Legal Issues

  1. 1 Whether the EMB Extension applies to the Motor or the Mill as a whole
  2. 2 Whether the four conditions for attachment under the EMB Extension were satisfied prior to the incident
  3. 3 Whether business interruption losses relating to the Molybdenum plant are covered

Ratio Decidendi

The EMB Extension applies to the Motor as a discrete item of machinery, not the Mill as a whole. The four conditions for attachment under the EMB Extension were satisfied prior to the incident, as evidenced by contractual documentation and factual handover. Therefore, Coromin is entitled to indemnity for property damage and business interruption losses (excluding those relating to the Molybdenum plant, which was not insured at the relevant time).

Court Disposition

Claim allowed in part

Orders

  • Declaration that Coromin is entitled to indemnity under the EMB Extension for property damage and business interruption losses relating to the Motor incident, subject to policy terms and limits.
  • Claim for business interruption losses relating to the Molybdenum plant is dismissed.