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Negotiation period expenses not allowed as general average

Litigation Letter

Negotiation period expenses not allowed as general average

Mitsui & Co Ltd and Others v Beteiligungsgesellschaft LPG Tankerflotte MBH & Co KG and Another (The “Longchamp”) [2016] 2 Lloyd’s Rep 375, [2016] EWCA Civ 708, 13 July 2016

This is a decision on the scope of expenses allowable as general average in the York-Antwerp Rules 1974. In January 2009, the vessel known as The “Longchamp” was forcibly taken by Somali pirates, who demanded a ransom of US$6 million. The shipowner agreed a payment of US$1.8 million and paid this in March 2009.

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