SUEZ FORTUNE INVESTMENTS LTD AND ANOTHER V TALBOT UNDERWRITING LTD AND OTHERS (THE “BRILLANTE VIRTUOSO”) (NO 2)

[2019] EWHC 2599 (Comm), Queen’s Bench Division, Commercial Court, Mr Justice Teare, 7 October 2019

Insurance (marine, war risks) – Wilful misconduct – Piracy – Malicious acts – Breach of warranty – Warranty of legality – Rights of bank as co-assured

On 5 July 2011 the motor tanker Brillante Virtuoso was drifting in the Gulf of Aden in the course of a voyage from Ukraine to China carrying a cargo of fuel oil. A small boat carrying seven armed men approached the vessel, and they were permitted to board. Once on board the armed men took control of the vessel and told the crew to “move to Somalia”, although in fact the vessel did not take that course. Subsequently there were gunshots and a fire broke out in the engine room at around 02.45 on 6 July. The armed men left the vessel, and she subsequently became a total loss by reason of the fire. A claim was made by the owner and the mortgagee bank, who were co-assureds under a marine war risks policy.