Marine insurance – Piracy – Vessel seized by Somali pirates – Cargo owners serving Notice of Abandonment during negotiations between shipowner and pirates for release of vessel – Whether cargo became actual or constructive total loss at date of Notice of Abandonment

Sir Sydney Kentridge QC and Andrew Henshaw (Arbis LLP) for the claimant; Peter MacDonald Eggers and Sarah Cowey (Waltons & Morse LLP) for the defendant.

Masefield AG v Amlin Corporate Member Ltd (The “Bunga Melati Dua”) – QBD (Com Ct)(David Steel J) – 18 February 2010

On 19 August 2008 the tanker Bunga Melati Dua was seized by Somali pirates in the Gulf of Aden. The vessel together with her crew and cargo were taken to Somali waters. The claimant was the owner of two parcels of bio-diesel which had been shipped onboard the vessel. The defendant was the insurer of the cargo under a policy that covered loss by both piracy and theft.