Question of liability limitation

Limitation of insurance liability in respect of vessels sent to sea in an unseaworthy state is to be probed by the Law Lords. They have given leave for Uni-Polaris Shipping Co to challenge an Appeal Court ruling in February this year, in which a $2m Commercial Court award against it by Mr Justice Tuckey in 1994 was upheld. The award was to the Manifest Shipping Co, owner of the Sea Star, which caught fire and was a total loss in 1990. Uni-Polaris, which insured the vessel, sought to limit its liability, alleging the ship was sent to sea in an unseaworthy condition and that Manifest was aware of this, and was therefore guilty of breach of faith.