Elafonissos Fishing & Shipping v Aigaion Insurance Co SA
(the "AGIOS SPYRIDON")
[2012]1
Commercial Court, 31 May 2012
Under English law, the legal effect of breach of warranty is
draconian, entitling the insurer to treat himself as discharged
from all liability under the policy, irrespective of causation. For
this reason, warranties are interpreted strictly, a position
vividly illustrated by the decision of the Court of Appeal in
Hussain v Brown [1995].
In that case, involving a property policy, the assured had been
asked in the proposal form "are any premises fitted with any
system of intruder alarm?". The assured gave the answer
"yes", which was true at the time. However, it had ceased
to be case by the time the premises were damaged by a fire some
five months later, in that there was no longer an operable intruder
alarm system in place. Insurers failed in their argument that the
warranty imposed an ongoing obligation to maintain the warranted
system. If
