DAC Beachcroft Quarterly Marine Case Law Update - April 2014
Published 1 April 2014
Trafigura Beheer BV v Navigazione Montanari SpA  EWHC 129 (Comm)
English Commercial Court, 30 January 2014
In this case the Commercial Court was asked to consider the true construction of an "in-transit loss" in a charterparty relating to a consignment of premium motor oil stolen by pirates.
San Evans Maritime Inc & Ors v Aigaion Insurance Co SA  EWHC 163 (Comm)
English Commercial Court, 4 February 2014
Although a lead underwriter may wish to make it clear that in settling a claim he is doing so on his own behalf only and is not purporting to bind following underwriters, this will not frustrate the obvious purpose of a follow clause obliging the following underwriter to follow any settlement by the lead.
Kairos Shipping Ltd & Anor v Enka & Co LLC & Ors  EWCA Civ 217
UK Court of Appeal, 6 March 2014
The Court of Appeal has ruled that a limitation fund under the International Convention on Limitation of Liability for Maritime Claims 1976 ("the Convention") can be constituted by way of a guarantee in the form of a letter of undertaking ("LOU") from a P&I Club. The judgment will be welcomed by P&I Clubs, insurers and reinsurers alike, as it will provide an alternative to making a cash payment into court to constitute a limitation fund.