Case Alert - [2018] EWHC 95 (Comm)

Court considers whether deed of indemnity from insurer is adequate security for costs

A recent decision of a specialist tribunal in Dubai could have far-reaching consequences for the maritime industry. In this article Robert Thomas QC, of Quadrant Chambers, and Robert Lawrence and Leonard Soudagar, of Clyde & Co, examine how it is now possible, in certain circumstances, for a shipowner to set up a limitation fund in the UAE.

An insolvent company obtained damages in a professional negligence claim against its solicitors. That claim had been pursued with the benefit of various insurance arrangements (including ATE insurance). The insurers sought recovery of unpaid premium but the bankruptcy trustee of the company argued that they were only unsecured creditors in respect of the proceeds.

Case alert - [2017] EWHC 3004 (Ch)

Court holds insurers are not entitled to a lien for unpaid premium due from insolvent insured

An insolvent company obtained damages in a professional negligence claim against its solicitors. That claim had been pursued with the benefit of various insurance arrangements (including ATE insurance). The insurers sought recovery of unpaid premium but the bankruptcy trustee of the company argued that they were only unsecured creditors in respect of the proceeds.

The vast majority of charter parties will include in their terms a lien clause which confers on the owner a lien over sub-freight (and sometimes sub-hire), for any amounts due to the owner under the head charter party. If the owner exercises his lien, sums which would otherwise be payable by the sub-charterer to the charterer under the sub-charter party, should instead become directly payable to the owner.

In Tiuta International Limited (in liquidation) v De Villiers Surveyors Limited [2017] UKSC 77 the Supreme Court reminded us that the measure of damages is that which is required to restore the claimant as nearly as possible to the position that he would have been in if he had not sustained the wrong.

The Court of Appeal overturns the High Court decision concerning an ATE insurance policy lacking anti-avoidance provisions as adequate security for costs.

Case Alert - [2017] EWCA Civ 1872

Court of Appeal orders security for costs where ATE insurance policy did not contain an anti-avoidance provision

Court of Appeal sets out test for whether defendant has assets for a freezing order application and considers the impact of delay in applying

High Court holds that an Insolvency Exclusion applies in respect of a claim under the Third Parties (Rights Against Insurers) Act 1930 (“1930 Act”) and awards summary judgment accordingly but declines to provide much-needed guidance on insurers’ liability in the case of claims partially settled by the Financial Services Compensation Scheme (“FSCS”).