Melinda Holdings SA v Hellenic Mutual War Risks Association (Bermuda) Ltd (The "Silva") - QBD (Com Ct)(Burton J) - 18 February 2011

Marine insurance – War risks insurance – Vessel arrested and detained by Egyptian court to enforce court dues owed in respect of unconnected vessel – Vessel becoming constructive total loss by reason of detention – Whether insurers entitled to rely on exclusion of “ordinary judicial process” – Whether shipowners in breach of sue and labour clause

(2011) 816 LMLN 1

In 1996 the owners and the managers of the vessel Safir (among other defendants) were found liable by the Port Said Court of First Instance in respect of a pollution incident in 1989 when the Safir grounded off the coast of Egypt. The defendants were found jointly liable to the Egyptian Environmental Affairs Agency (“EEAA”) for a sum equivalent to US& 51,650,000. No part of that sum had ever been paid.

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Mar 8 2011

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