Lloyd's Maritime Law Newsletter
Manifest Shipping Co Ltd v Uni-Polaris Shipping Co Ltd (The “Star Sea”) - House of Lords (Lord Steyn, Lord Hoffmann, Lord Clyde, Lord Hobhouse of Woodborough and Lord Scott of Foscote) - 18 January 2001
Marine insurance - Whether ship sent to sea in unseaworthy state with privity of assured - Whether assured had “blind-eye” knowledge of unseaworthiness
The vessel
Star Sea,
one of a fleet of vessels beneficially owned by the Kollakis family, was insured under a time policy. On 29 May an accidental
fire started in the engine-room workshop. Despite attempts to extinguish the fire, it spread to the accommodation. The vessel
was towed to Balboa, arriving on 1 June 1990, and the fire eventually extinguished, but the vessel had become a constructive
total loss (“CTL”).