Dornoch Ltd & Ors v Westminster International BV & Ors [2009] EWHC 1782 (Admlty) (17 July 2009)

Dornoch Ltd & Ors v Westminster International BV & Ors [2009] EWHC 1782 (Admlty) (17 July 2009)

The endorsement of 10 March 2008 did not amount to an election by underwriters to disclaim their right to take over the vessel; underwriters retained their entitlement to the residual value. Even if the endorsement could be construed as an election, Boskalis is estopped by convention from asserting this due to the parties' shared assumption and conduct. Under Thai law, the claimants did not acquire a proprietary interest in the vessel prior to 9 January 2009, as Thai law does not incorporate the English Marine Insurance Act 1906 for proprietary interests, and the relevant provisions of the Thai Civil and Commercial Code do not confer such an interest.

Citation
[2009] EWHC 1782 (Admlty)
Parties
Claimant: Dornoch Limited (on its own account and on behalf of all other underwriting members of Syndicate 1209 for the 2007 year of account); Claimant: Royal & Sun Alliance Insurance plc; Claimant: Aspen Insurance UK Limited and Others; Defendant: Westminster International BV; Defendant: Koninklijke Boskalis Westminster NV; Defendant: Boskalis Westminster Limited; Defendant: Nigerian Westminster Dredging and Marine Limited
Jurisdiction
England and Wales
Judgment Date
17 July 2009
Procedural Posture
Commercial/admiralty Insurance Dispute / Judgment After Trial on Phase 2 Issues
Outcome
Claim dismissed in respect of proprietary interest prior to 9 January 2009; underwriters entitled to residual value; estoppel by convention applies against Boskalis.
Legal Topics
Constructive Total Loss, Subrogation, Proprietary Interests, Lex Situs, Estoppel by Convention
Insurance Law Conflict of Laws Maritime Law Constructive Total Loss Subrogation Proprietary Interests Lex Situs Estoppel by Convention

Case Brief

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Parties

Dornoch Limited (on its own account and on behalf of all other underwriting members of Syndicate 1209 for the 2007 year of account)

Claimant

Royal & Sun Alliance Insurance plc

Claimant

Aspen Insurance UK Limited and Others

Claimant

Westminster International BV

Defendant

Koninklijke Boskalis Westminster NV

Defendant

Boskalis Westminster Limited

Defendant

Nigerian Westminster Dredging and Marine Limited

Defendant

Procedural Posture

Commercial/admiralty Insurance Dispute / Judgment After Trial on Phase 2 Issues

Legal Issues

  1. 1 Whether underwriters elected not to take over the assured's interest in the vessel after payment for a constructive total loss (CTL)
  2. 2 Whether underwriters are entitled to the residual value of the vessel if they disclaim their right to take over the vessel
  3. 3 Whether the claimants acquired a proprietary interest in the vessel prior to 9 January 2009 under Thai law

Ratio Decidendi

The endorsement of 10 March 2008 did not amount to an election by underwriters to disclaim their right to take over the vessel; underwriters retained their entitlement to the residual value. Even if the endorsement could be construed as an election, Boskalis is estopped by convention from asserting this due to the parties' shared assumption and conduct. Under Thai law, the claimants did not acquire a proprietary interest in the vessel prior to 9 January 2009, as Thai law does not incorporate the English Marine Insurance Act 1906 for proprietary interests, and the relevant provisions of the Thai Civil and Commercial Code do not confer such an interest.

Court Disposition

Claim dismissed in respect of proprietary interest prior to 9 January 2009; underwriters entitled to residual value; estoppel by convention applies against Boskalis.

Orders

  • Claimants did not acquire a proprietary interest in the vessel prior to 9 January 2009 under Thai law.
  • Underwriters are entitled to the residual value of the vessel.