Marine Insurance - The Star Sea

(Manifest Shipping Co Ltd v Uni-Polaris Shipping Co Ltd The Sea Star (forthcoming in [2001] Lloyd’s Rep IR))

The House of Lords, on 18 January 2001 (to be reported shortly in [2001] Lloyd’s Rep IR), delivered its long awaited decision in Manifest Shipping Co Ltd v Uni-Polaris Shipping Co Ltd , The Star Sea. The case deals with two crucial issues, one relatively settled and one persistently controversial. The settled issue is the effect of a vessel being sent to sea in an unseaworthy condition. The disputed issue is the continuing duty of utmost good faith. On each issue the five members of the House of Lords – Lords Steyn, Clyde, Hobhouse, Hoffmann and Scott, were unanimous both in their reasoning and in the outcome (in favour of the assured on both issues). The case had previously been to the High Court, before Mr Justice Tuckey ( [1995] 1 Lloyd’s Rep 651 ) and the Court of Appeal ( [1997] 1 Lloyd’s Rep 360 ).