Bar top 30 position: 10

Princess of the Stars: typhoon warranties

By Peter MacDonald Eggers QC

On 21 June 2008, the passenger cargo vessel Princess of the Stars was lost in the Philippines after sailing into Typhoon Frank. Tragically, more than 800 lives were also lost. 

The owners of cargoes on board the vessel claimed against the shipowner and in some cases also against the shipowner’s cargo liability insurer, Oriental. Oriental had placed a reinsurance policy for its cargo liability exposure with reinsurers in London.

The reinsurers commenced proceedings seeking a declaration that they are not liable to indemnify Oriental because of a breach of a typhoon warranty in the reinsurance contract…

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