Smit Tak Offshore Services v. Youell (The Mare) - Court of Appeal (Mustill, Mann & Farquharson L.JJ.) - 18 October 1991

Marine insurance - Whether wreck removal expenses recoverable under salvage company’s “Umbrella First Loss” policy

On 30 January 1988 the vessel Mare was attacked by an Iranian gunboat, set on fire and abandoned. Smit Tak Offshore Services (“S.T.O.S.”) was a joint venture based in Sharjah in which Smit Tak B.V. (“Smit T.A.K.”) owned a 49% interest. S.T.O.S. requested a salvage tug owned by an associated company to proceed to the casualty. The tug performed salvage services under Lloyd’s Open Form and started to tow the Mare towards Dubai. The Mare then started to list dangerously. She was towed to a position just outside the territorial waters of Dubai, and anchored. On 4 February she sank in a depth of 21 metres.