The Cendor MOPU
The insurance company had refused a claim after the failure of an oil rig, saying that the loss of the rig legs during transit was the inevitable consequence of the voyage, and that since insurance was against risks, not certainties, they were under no liability for the loss of the legs.
Held: The insurer’s argument was rejected, concluding ‘that the failure of the legs as this rig was towed round the Cape was very probable, but it was not inevitable.’ and ‘a developed crack would not, on its own, have been sufficient to cause one of the legs to come off. That required in addition a ‘leg breaking’ or ‘final straw’ stress that finally fractured the weakened steel. As Mr Colman [one of the experts called at the trial] put it, ‘you’ve got to catch it just right, if you want to make it actually fail all the way round.” The insurers had proved that ‘the proximate cause of the loss was the fact that the legs were not capable of withstanding the normal incidents of the insured voyage from Galveston to Lumut, including the weather reasonably to be expected.’ Accordingly, the cause of the loss was inherent vice within the meaning of the policy and the insurers were not liable for the claim.
Blair J
[2009] EWHC 637 (Comm), [2009] 2 Lloyd’s Rep 72, [2009] 2 All ER (Comm) 795, [2009] Lloyd’s Rep IR 511
Bailii
Marine Insurance Act 1906 55(1)
England and Wales
Cited by:
Appeal from – Global Process Systems Inc and Another v Berhad CA 17-Dec-2009
An oil rig suffered major damage in transit in rough seas. The insurers repudiated liability saying that the damages was the result of a natural vice rather than perils at sea.
Held: The fact that the sea conditions were within the range of . .
At first instance – Global Process Systems Inc and Another v Berhad SC 1-Feb-2011
An oil rig (The Cendor MOPU) was being transported from Texas to Malaysia. During the voyage, three of the four legs suffered damage. The insurers refused liability saying that the damage was the result of inherent weaknesses in the rig.
Held: . .
Lists of cited by and citing cases may be incomplete.
Updated: 01 August 2021; Ref: scu.328003
