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Lloyd’s defence: forged additional war cover and mortgagee’s consent to trading warranty breach preclude Oceanus Capital’s MII claim (High Court of England and Wales)

Published on: 02 October 2024

Published by a Law360 reporter
Legal News
Article summary

In its High Court defence dated 18 September 2024, Lloyd’s Insurance Company SA said Oceanus Capital SARL knew the war risks policy issued for its underwriters would not respond to any loss or damage while the vessel operated beyond the stated navigation limits. Lloyd’s contended the proximate cause of Oceanus Capital’s loss was its inability to recover under additional war risk cover the ship’s managers claimed to have arranged, which in fact was a forgery. It further maintained that loss arising from forgery was excluded under a separate mortgagee interest insurance taken out by Oceanus Capital to protect the wealth adviser’s interest in a cargo ship pledged as security for a loan facility. Lloyd’s wrote that underwriters are not liable to pay any sums to the mortgagee, and that the mortgagee is not entitled to any relief against underwriters...

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