Den norske Bank ASA v Acemex Management Company Ltd (The "Tropical Reefer") - QBD (Com Ct)(Nigel Teare QC sitting as a judge of the QBD) - 26 February 2003

Mortgage of ship - Mortgagee arresting vessel to enforce repayment of mortgage loan - Whether mortgagee owed duty in equity in deciding when to exercise right of arrest

The claimant bank sought judgment against the defendants pursuant to a Guarantee and Indemnity ("the Guarantee") signed by the defendants. The claimants had loaned US$6 million to three borrowers for the purchase of three vessels, one of which was the Tropical Reefer. The security for the loan included three mortgages on the three vessels. Further security included the Guarantee, which was governed by English law.