The Maira - Court of Appeal (Lawton, Kerr & Browne-Wilkinson L.JJ.) - 5 December 1984

Whether ship managers complied with duty to insure vessel in accordance with mortgage agreements

The vessel Maira was built in Japan. In 1977 the owners paid the builders 30% of the purchase price and it was agreed that the remaining 70% should be financed on mortgage. In the event, two mortgages were entered into. The second mortgage was between the owners and the National Bank of Greece, and guaranteed part of the sums to be paid by the owners under the first mortgage. The total principal sum contingently secured by the bank was yen 996 million. Both mortgages contained covenants by the owners to insure on hull and machinery.