KASTOR NAVIGATION CO LTD v AGF MAT [2004] EWCA Civ 277

[2004] Lloyd's Rep IR 481

COURT OF APPEAL

Before Lord Justice Tuckey, Lord Justice Rix and Lord Justice Neuberger

Insurance (marine) - Vessel damaged by fire and became constructive total loss - Vessel sank immediately afterwards by ingress of water not caused by fire - Fire an insured peril but ingress of water unexplained and therefore uninsured - Whether assured able to recover for constructive total loss despite subsequent actual total loss - Notice of abandonment not necessary in circumstances - Whether assured required to abandon vessel to insurers - Whether doctrine of merger applied to successive losses - Marine Insurance Act 1906, sections 60, 61, 62 and 77 - Institute Hulls Clauses 1995, clause 18 - Costs - Whether judge correct in ordering successful claimant to pay his own costs and 70 per cent of defendant’s costs on issue by issue basis - Civil Procedure Rules Parts 36 and 44.