National Bank of Greece v. Pinios Shipping Co. No. 1 and another (The Maira) - Court of Appeal (O’Connor, Lloyd and Nicholls L.JJ.) - 2 March 1988

Marine insurance proceeds insufficient to pay off ship’s mortgagee bank - Whether shipowners liable to pay compound interest on debt owed to bank

The vessel Maira became a total loss in April 1978. She was insured for $10 million. The insurance proceeds were insufficient to enable the vessel’s owner to repay the National Bank of Greece under an agreement dated 8 February 1977. In 1980 the bank issued proceedings against the shipowners claiming the total sum of $734,979 which included an element of compound interest.