Addleshaw Goddard

UK 200 2013 position: 23

Duties under a follow clause: lead underwriters left in the dark?

In the recent case of San Evans Maritime Inc v Aigaion Insurance Co [2014] EWHC 163 (Comm), the Commercial Court held that a ‘follow clause’ had the effect of binding Aigaion to a settlement agreed by Lloyd’s syndicates under a separate insurance policy even though the settlement agreement expressly stated that the syndicates were not acting in their capacity as lead underwriters when they signed the agreement. The decision can be explained, however, by the circumstances of this particular case and the clear wording of the ‘follow clause’.

The dispute arose from the grounding of the vessel St Efrem in Brazil in July 2010. The insurance position for the vessel was as follows: a 50 per cent share had been insured with three Lloyd’s syndicates — Catlin, Ark and Brit (‘the Lloyd’s Policy’); a 30 per cent share had been insured with Aigaion (‘the Aigaion Policy’); and the remaining 20 per cent share had remained uninsured.

Critically, the Aigaion Policy contained the ‘follow clause’: ‘agreed to follow London’s Catlin and Brit Syndicate in claims excluding ex-gratia payments’…

Click on the link below to read the rest of the Addleshaw Goddard briefing. 

Briefings from Addleshaw Goddard

View more briefings from Addleshaw Goddard

Analysis from The Lawyer

  • pannone.jpg

    Another Mancunian merger for Slater & Gordon?

    Could Slater & Gordon achieve its stated aim of becoming a top consumer brand by acquiring Pannone?

  • Addleshaws

    Number crunching: Addleshaw Goddard

    The past five years have not been easy for Addleshaw Goddard. The firm’s revenue fell 7 per cent from £173.1m to £161.9m between 2008/09 and 2010/11 and despite finances looking up in 2011/12, when Addleshaws reported a 30 per cent increase in net profit, it has shown no notable compound growth in turnover since 2007/08.

View more analysis from The Lawyer


Milton Gate
60 Chiswell Street

Turnover (£m): 166.50
No. of Lawyers: 592