MT ZOUZOU: detention, constructive total loss and mortgagee’s interest insurance

In The ZOUZOU, the claimant mortgagee bank’s claim under the mortgagee interest insurance (MII) arose out of a 14 month detention of the Vessel in Venezuela following an allegation that the crew were attempting to smuggle diesel oil. The owners of the Vessel claimed for a constructive total loss (CTL) under their war risks cover. Following avoidance of the war risks policy by war risks underwriters (on the grounds of material non-disclosure by the owners, unrelated to the detention), the Bank sought to recover from the defendant Underwriters under the MII Policy. The Bank’s claim was for about US$71 million plus interest.

Jonathan and Ingrid will discuss the clarity provided by the Commercial Court in respect of the proper construction and scope of indemnity cover of MII policies in its judgment conclusively rejecting the Bank’s claim.

Kennedys acted for the successful defendant Underwriters.

Location

The presentation will be held at 1pm-2pm followed by lunch and drinks on Wednesday 30 November 2022 at Kennedys’ office, which is located at 25 Fenchurch Avenue, London EC3M 5AD.

Please aim to arrive for registration from 12:30pm.

Speakers

Jonathan Evans

Jonathan is a Partner at Kennedys who specialises in marine insurance and reinsurance, shipping disputes, marine casualties and marine cyber. He represents insurers and reinsurers in respect of claims under: hull and machinery, IV, loss of hire, cargo, mortgagee's interest, war, marine cyber, charterers' liability, yachts, ports and terminals and marine liability. Jonathan also acts for shipowners, charterers and P&I Clubs in relation to: collisions, salvage, wreck removal and cargo claims. He regularly lectures to marine insurers/P&I Clubs based in the UK and overseas and to university students. Jonathan is a former Chairman of Lloyd's Marine Under 35s Insurance Group, a member of the London Maritime Arbitrators’ Association and is an Adjunct External Fellow for the Centre of Maritime Law of the National University of Singapore.

https://kennedyslaw.com/our-people/profiles/london/jonathan-evans/

Ingrid Hu

Ingrid qualified into the Kennedys’ Marine Team in September 2020 upon completion of her training contract at Kennedys. Ingrid advises on a variety of matters including hull & machinery, cargo, P&I, salvage/GA and charterparty issues, and has experience in coverage, defence and recovery disputes.

https://kennedyslaw.com/our-people/profiles/london/ingrid-hu/