Viking Inshore Fishing (Pty) Ltd v Mutual and Federal Insurance Co Ltd (41/2015) [2016] ZASCA 21; [2016] 2 All SA 730 (SCA); 2016 (6) SA 335 (SCA) (18 March 2016)

Viking Inshore Fishing (Pty) Ltd v Mutual and Federal Insurance Co Ltd (41/2015) [2016] ZASCA 21; [2016] 2 All SA 730 (SCA); 2016 (6) SA 335 (SCA) (18 March 2016)

The Supreme Court of Appeal held that the Merchant Shipping Act warranty did not operate to bar the appellant's claim for indemnity under the Inchmaree clauses, as the policy expressly provided that the warranty should not nullify the Inchmaree clause. The evidence did not establish a want of due diligence on the part of the owner, Viking, as the vessel was properly manned and equipped according to regulatory requirements, and there was no causal link between any alleged deficiency and the loss. The statements by Mr Ehlers were unreliable and should not have been admitted or given weight. The quantum of indemnity was based on the agreed value in the policy, and interest should accrue from...

Citation
[2016] ZASCA 21
Parties
Appellant: Viking Inshore Fishing (Pty) Ltd; Respondent: Mutual and Federal Insurance Co Ltd
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
18 March 2016
Case Number
41/2015
Procedural Posture
Civil Appeal / Appeal From Western Cape Division of the High Court, Cape Town
Outcome
Appeal upheld. Judgment of the court below set aside and replaced with judgment for the appellant.
Judges
Maya, Wallis, Saldulker, Swain, Victor
Legal Topics
Marine Insurance, Inchmaree Clause, Merchant Shipping Act Warranty, Due Diligence, Admissibility of Hearsay, Quantum of Indemnity
Commercial and Corporate Land and Property Marine Insurance Inchmaree Clause Merchant Shipping Act Warranty Due Diligence Admissibility of Hearsay Quantum of Indemnity

Case Brief

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Parties

Viking Inshore Fishing (Pty) Ltd

Appellant

Mutual and Federal Insurance Co Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From Western Cape Division of the High Court, Cape Town

Legal Issues

  1. 1 Whether the Merchant Shipping Act warranty bars the appellant's claim for indemnity under the marine hull policy.
  2. 2 Whether the loss of the vessel resulted from want of due diligence by the owner, thus excluding liability under the Inchmaree clauses.
  3. 3 Whether the statements by Mr Ehlers regarding the navigational watch are admissible and reliable as evidence.

Ratio Decidendi

The Supreme Court of Appeal held that the Merchant Shipping Act warranty did not operate to bar the appellant's claim for indemnity under the Inchmaree clauses, as the policy expressly provided that the warranty should not nullify the Inchmaree clause. The evidence did not establish a want of due diligence on the part of the owner, Viking, as the vessel was properly manned and equipped according to regulatory requirements, and there was no causal link between any alleged deficiency and the loss. The statements by Mr Ehlers were unreliable and should not have been admitted or given weight. The quantum of indemnity was based on the agreed value in the policy, and interest should accrue from...

Court Disposition

Appeal upheld. Judgment of the court below set aside and replaced with judgment for the appellant.

Orders

  • Payment of the sum of R3 990 000 together with interest on the sum of R3.5 million at a rate of 15.5% per annum from 8 October 2005 to date of payment.
  • Costs of suit, including the qualifying expenses of Captain Cox.