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ARTICLE · 07 MARCH 2011

Weekly Update - A Summary Of Recent Developments In Insurance, Reinsurance And Litigation Law - 08/11

Clyde & Co
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A vessel was purchased for scrap and was to be towed as a dead ship from the US Gulf to India.

United KingdomInsurance
Nigel Brook
Nigel Brook
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This Week's Caselaw

Argo v Liberty

Breach of warranty, waiver and affirmation/damages for misrepresentation

A vessel was purchased for scrap and was to be towed as a dead ship from the US Gulf to India. Insurance was purchased for the journey. After the vessel sank, cover was declined and litigation commenced in the US. After the insurer won in the US courts, a new claim was brought against the insurer in England. In the course of the English proceedings, the insurer raised two new defences (in addition to the defences already raised in the US proceedings) - namely, breach of a warranty in the policy that "warranted no release, waivers or "hold harmless" given to tug or towers" and also that it was entitled to avoid because of misrepresentations. Mackie J held as follows:

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