Insurer Gard is to appeal a local Arendal court ruling awarding Champion Shipping NOK 190m ($22.8m) in compensation, plus costs, for the constructive total loss of a tanker.
The ruling relates to a claim filed by the Bergen-based shipowner following the breakdown of the main engine on the 43,000-dwt Champion Express (built 1999) outside Indonesia almost three years ago, when the tanker was on its way to Latvia.
The ship was rescued and towed back to Indonesia, where it remains at anchor pending a final outcome of the case.
The local court criticised Gard for its handling of the insurance matter.
Gard special advisor for external relations Svein Buvik confirmed to Norwegian financial newspaper Finansavisen that the insurer intends to appeal. He declined to comment further.
The Arendal court accepted Champion Shipping's argument that, as the cost of repairs amounted to more than 80% of the value of the Champion Express, it constitutes a constructive total loss under the terms of its hull and machinery cover. Gard, which has the claims lead in the cover involving multiple insurers, disagrees.
VesselsValue estimates the Champion Express has a market value of $5.3m and a scrap value of some $4.6m.
Champion Shipping controls a fleet of nearly 30 MR tankers managed by Champion Tankers, whose fleet includes six tankers controlled by Espen Galtung Dosvig's EGD Shipholding.
The company's tankers are technically managed by Genoa Maritime of Greece and Thome Ship Management of Singapore.
Karl Lodrup Kvalheim, 70, controls Champion Shipping with a 66.2% shareholding held through his holding company Nesttun Invest. He is also the company's chairman.
