Melinda Holdings SA v Hellenic Mutual War Risks Association (Bermuda) Ltd (The "Silva") - QBD (Com Ct)(Burton J) - 18 February 2011

(2011) 816 LMLN 1

Marine insurance – War risks insurance – Vessel arrested and detained by Egyptian court to enforce court dues owed in respect of unconnected vessel – Vessel becoming constructive total loss by reason of detention – Whether insurers entitled to rely on exclusion of “ordinary judicial process” – Whether shipowners in breach of sue and labour clause

In 1996 the owners and the managers of the vessel Safir (among other defendants) were found liable by the Port Said Court of First Instance in respect of a pollution incident in 1989 when the Safir grounded off the coast of Egypt. The defendants were found jointly liable to the Egyptian Environmental Affairs Agency (“EEAA”) for a sum equivalent to US& 51,650,000. No part of that sum had ever been paid.