European Group Ltd & Ors v Chartis Insurance UK Ltd.

European Group Ltd & Ors v Chartis Insurance UK Ltd.

The court found on the balance of probabilities that the damage to the economiser blocks occurred during transit due to resonant vibration caused by missing packing, not by wind excitation after arrival. The inherent vice exclusion did not apply because the proximate cause was an external fortuity (vibration during transit) and not the inherent characteristics of the cargo. The quantum of loss was established at £4.6 million.

Parties
Claimant: European Group Limited; Claimant: Allianz Global Corporate and Speciality AG (UK Branch); Claimant: Chartis Insurance UK Limited; Claimant: HDI-Gerling Industrial Insurance (UK Branch); Claimant: Mitsui Sumitomo Insurance Underwriting at Lloyd’s Limited; Claimant: AF Beazley (Syndicate 2623/623) at Lloyd’s; Defendant: Chartis Insurance UK Ltd
Jurisdiction
England and Wales
Judgment Date
11 May 2012
Procedural Posture
Commercial Insurance Dispute / Judgment After Trial
Outcome
Claim allowed in full
Legal Topics
Marine Insurance, Causation, Inherent Vice, Policy Interpretation, Quantum of Damages
Insurance Law Commercial Law Marine Insurance Causation Inherent Vice Policy Interpretation Quantum of Damages

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Parties

European Group Limited

Claimant

Allianz Global Corporate and Speciality AG (UK Branch)

Claimant

Chartis Insurance UK Limited

Claimant

HDI-Gerling Industrial Insurance (UK Branch)

Claimant

Mitsui Sumitomo Insurance Underwriting at Lloyd’s Limited

Claimant

AF Beazley (Syndicate 2623/623) at Lloyd’s

Claimant

Chartis Insurance UK Ltd

Defendant

Procedural Posture

Commercial Insurance Dispute / Judgment After Trial

Legal Issues

  1. 1 Whether damage to economiser blocks occurred during transit or after arrival on site
  2. 2 Whether inherent vice exclusion applies to the loss
  3. 3 Whether the quantum of loss claimed is proved

Ratio Decidendi

The court found on the balance of probabilities that the damage to the economiser blocks occurred during transit due to resonant vibration caused by missing packing, not by wind excitation after arrival. The inherent vice exclusion did not apply because the proximate cause was an external fortuity (vibration during transit) and not the inherent characteristics of the cargo. The quantum of loss was established at £4.6 million.

Court Disposition

Claim allowed in full

Orders

  • Judgment for the Claimants for their respective proportions of £3,680,000