Comatra Ltd & Anor v Various Underwriters [2000] EWCA Civ 244 (31 July 2000)

Comatra Ltd & Anor v Various Underwriters [2000] EWCA Civ 244 (31 July 2000)

Where a non-separation agreement, including a Bigham clause, is reasonably entered into after a casualty caused by an insured peril, the shipowner's recoverable proportion of general average under clause 11.1 of the Institute Time Clauses and section 66(4) of the Marine Insurance Act 1906 includes the excess Bigham amount, as the agreement is indivisible and defines the respective shares of ship and cargo for insurance purposes.

Citation
[2000] EWCA Civ 244
Parties
Claimant: Owners of the ship ABT RASHA; Defendant: Hull underwriters (Defendants)
Jurisdiction
England and Wales
Judgment Date
31 July 2000
Procedural Posture
Appeal / Appeal From Order on Preliminary Issue
Outcome
Appeal allowed
Legal Topics
General Average, Non Separation Agreements, Bigham Clause, Marine Insurance Act 1906, Institute Time Clauses Hulls
Marine Insurance Admiralty Law General Average Non Separation Agreements Bigham Clause Marine Insurance Act 1906 Institute Time Clauses Hulls

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Parties

Owners of the ship ABT RASHA

Claimant

Hull underwriters (Defendants)

Defendant

Procedural Posture

Appeal / Appeal From Order on Preliminary Issue

Legal Issues

  1. 1 Whether the excess Bigham amount (US$787,426.28) is recoverable by shipowners from hull underwriters under clause 11.1 of the Institute Time Clauses and/or section 66(4) of the Marine Insurance Act 1906 as part of their proportion of general average

Ratio Decidendi

Where a non-separation agreement, including a Bigham clause, is reasonably entered into after a casualty caused by an insured peril, the shipowner's recoverable proportion of general average under clause 11.1 of the Institute Time Clauses and section 66(4) of the Marine Insurance Act 1906 includes the excess Bigham amount, as the agreement is indivisible and defines the respective shares of ship and cargo for insurance purposes.

Court Disposition

Appeal allowed

Orders

  • Appeal from judgment and order of Mr. Justice David Steel allowed; paragraphs 1, 3 and 4 set aside.
  • Preliminary issue (1) answered 'yes'; preliminary issue (2) answered 'no'.