Rare Sighting – A Successful Appeal Under Section 69 of the English Arbitration Act | ZFZ Postcard Cases

On 4 December, the Commercial Court granted an appeal under Section 69 of the English Arbitration Act – a rare occurrence.

The appeal arose from a general average contribution claim due to a USD 7.7 mil. ransom payment for the MV POLAR that had been taken by Somali pirates in 2010.

The Tribunal sided with cargo interests’ subrogated insurers who argued that proper construction of the bills of lading limited owners’ recovery to their K&R and war risk insurers – not their contractual counter parties.

Owners’ appeal resulted in the court’s application of rules on incorporation, clarifying that the creation of a joint insurance fund results in the insured’s counterparty’s obligation to pay for the insurances in question – precluding a subrogated right of claim.

Read more on the decision here.