Suez Fortune Investments Ltd & Anor v Talbot Underwriting Ltd & Ors (BRILLANTE VIRTUOSO) [2019]

Suez Fortune Investments Ltd & Anor v Talbot Underwriting Ltd & Ors (BRILLANTE VIRTUOSO) [2019] EWHC 2599 (Comm) — 7 October 2019 (Teare J)

“Owners and their co-insured Bank claimed on the war risk insurance following the boarding and setting on fire of the Vessel in the Gulf of Aden in 2011. The Court had struck out Owners' claim, for disobedience to a disclosure order. The Bank nonetheless continued, arguing that (even in the event of Owners' wilful default — as contended by insurers) it could rely on the insured perils. The Court found that the Vessel had indeed been scuttled and, as a result, "piracy" was unavailable, as objectively, the event was motivated by attempted fraud on insurers rather than fortuitous theft of the Vessel; "persons acting maliciously" did so in furtherance of the fraudulent plan rather than by spite or ill-will; the same applied to "malicious mischief'; senseless rather than orchestrated damage was required for "vandalism" and an intention to frustrate intended use of property for "sabotage". The Bank's claim therefore failed.”

Louise Glover
E. G. Arghyrakis & Co.
16th October 2019