Kastor Navigation and Ors v AGF MAT And Ors (The "Kastor Too")(No 2) - QBD (Com Ct)(Tomlinson J) - 17 March 2003

Practice - Costs - Claimant shipowners recovering judgment in marine insurance claim for sum substantially exceeding amount of Part 36 offer - Defendant underwriters winning on discrete issue - Appropriate order for costs

On 1 November 2000 the claimant shipowners brought proceedings against the defendant underwriters claiming an indemnity in respect of the actual total loss of their vessel Kastor Too allegedly caused by fire. The allegation was that the fire caused sufficient water to enter the vessel to cause it to sink within 15 hours of the outbreak of the fire. The claim was denied by the underwriters. On 17 August 2001 the claimants amended their pleadings to introduce a claim for an indemnity in respect of the constructive total loss of the vessel caused by fire, on the footing that the vessel had become a CTL by fire before she sank. Once that claim was introduced, it became the primary claim, to which the claim for an actual total loss by fire became an alternative.