North American Specialty Insurance Company v Debis Financial Services Inc (The “Atlas”) – US Court of Appeals (5th Circuit) (Davis, Wiener and Prado Ct JJ) – 25 October 2007

Marine insurance – Restitutionary claim – Vessel insured under policy containing hull and machinery and P & I coverage – Underwriters paying claim under hull policy for total loss of vessel – Payment made directly to vessel’s mortgagee – Underwriters subsequently seeking to recover payment on basis that shipowners had breached their warranty of seaworthiness – Whether underwriters waived defence of unseaworthiness – Whether plaintiff entitled to recover payment from mortgagee

(2008) 738 LMLN 2