Melinda Holdings SA v Hellenic Mutual War Risks Association (Bermuda) Ltd

Melinda Holdings SA v Hellenic Mutual War Risks Association (Bermuda) Ltd

The arrest and detention of the SILVA was not ordinary judicial process but an exercise of extortion by the Egyptian court for its own benefit, supported by fabricated evidence and improper conduct. The policy exclusion for ordinary judicial process did not apply. Melinda and its lawyers acted competently and reasonably in all the circumstances and did not breach the sue and labour clause. Hellenic failed to establish any exclusion or breach, and Melinda is entitled to recover the agreed sum under the policy.

Parties
Claimant: Melinda Holdings SA; Defendant: Hellenic Mutual War Risks Association (Bermuda) Ltd
Jurisdiction
England and Wales
Judgment Date
18 February 2011
Procedural Posture
Commercial Insurance Claim / Judgment After Trial
Outcome
Claim allowed
Legal Topics
War Risks Insurance, Policy Exclusions, Constructive Total Loss, Sue and Labour Clause, Judicial Process Exclusion
Insurance Law Maritime Law War Risks Insurance Policy Exclusions Constructive Total Loss Sue and Labour Clause Judicial Process Exclusion

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Parties

Melinda Holdings SA

Claimant

Hellenic Mutual War Risks Association (Bermuda) Ltd

Defendant

Procedural Posture

Commercial Insurance Claim / Judgment After Trial

Legal Issues

  1. 1 Whether the arrest and detention of the vessel SILVA by the Port Suez Court constituted 'ordinary judicial process' within the meaning of the insurance policy exclusion
  2. 2 Whether Melinda Holdings SA breached the 'sue and labour' clause of the policy

Ratio Decidendi

The arrest and detention of the SILVA was not ordinary judicial process but an exercise of extortion by the Egyptian court for its own benefit, supported by fabricated evidence and improper conduct. The policy exclusion for ordinary judicial process did not apply. Melinda and its lawyers acted competently and reasonably in all the circumstances and did not breach the sue and labour clause. Hellenic failed to establish any exclusion or breach, and Melinda is entitled to recover the agreed sum under the policy.

Court Disposition

Claim allowed

Orders

  • Judgment for Melinda Holdings SA for the agreed sum of US$ 19,200,000 against Hellenic Mutual War Risks Association (Bermuda) Ltd