The loss of a relatively modest containership has sparked a legal battle that puts some of the traditional tenets of protection and indemnity cover in the spotlight.
How can the ‘pay to be paid’ principle of P&I cover and a rule book requirement for English law and London arbitration be reconciled with Turkish law allowing direct claims on an insurer?
This is the place to read about the grounding of the 547-teu containership, Yusuf Cepnioglu (built 2005), on rocks off the Greek island of Mykonos in 2014, the costly wreck removal that ensued and an ongoing legal battle over P&I cover.
Coverage of the Yusuf Cepnioglu as well as judgments given by London courts can be read below. Judgments relating to a legal battle over the P&I cover for the tanker Prestige, involved in a major spill off Spain in 2002 are also shown.
TradeWinds' coverage of the Yusuf Cepnioglu:
| 29 Apr 2016 | Club ‘pay to be paid’ rule trumps Turkish law in London appeal English law and arbitration upheld as direct action rejected in Yusuf Cepnioglu battle. |
| 20 Apr 2016 | Court upholds power to halt suits against P&I Appeal court declines to overturn order blocking Yusuf Cepnioglu lawsuit in Turkey. |
| 7 Apr 2016 | P&I mutuals raise alarm over Prestige court ruling International Group warns of new new crisis similar to that of the Nissos Amorgos. |
| 27 Jan 2016 | London Club surprised by Prestige ruling P&I club seeks clarification after Spanish court says it is liable for 2002 tanker spill. |
| 10 Jul 2015 | Chocolate bar wrappers add to already unpalatable claim Small ships can produce big claims, as a Shipowners’ Club’s headache illustrates. |
| 5 Jun 2015 | Shipowners’ Club clings on to profit despite investment loss Market leader in smaller ship sector logs lowest surplus for several years. |
| 13 Feb 2015 | Shipowners’ wins ‘pay to be paid’ ruling The Shipowners’ Club has won the first round of dispute with Turkish charterer. |
| 17 Oct 2014 | Shipowners’ Club steers clear of general increase P&I mutual focused on smaller and specialised tonnage continues profitable run. |
| 25 Sep 2014 | Local authorities in the Greek island of Mykonos complete refloating of Turkish boxship. |
| 11 Mar 2014 | Greek authorities bid to prevent grounded containership becoming environmental disaster. |
| 10 Mar 2014 | Turkish owned containership runs aground off Greek holiday island of Mykonos. |
