Kastor Navigation and Anr v AXA Global Risks (UK) Ltd and Ors (The "Kastor Too") - Court of Appeal (Tuckey, Rix and Neuberger LJJ) - 10 March 2004

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

The claimant shipowners brought proceedings against the defendant underwriters claiming an indemnity in respect of the actual total loss of their vessel Kastor Too caused by fire. The allegation was that the fire caused sufficient water to enter the vessel to cause it to sink. The claim was denied by the underwriters. The claimants subsequently 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.