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The BSLE Sunrise, General Average bonds, General Average guarantees, claims, shipping, contract Home Publications Articles Claims under General Average Guarantees Claims under General Average Guarantees Publications Jeff Cox Published: April 06, 2020 Contact author Download article pdf Image The High Court decision in The BSLE Sunrise [2019] EWHC 2860 (Comm) held that cargo insurers can resist a claim for payment under a General Average guarantee where the General Average peril was caused by the actionable fault of Owners, or whilst the issue of underlying liability is yet to be resolved. Facts The case arose out of claimant Owners’ efforts to recover General Average expenses following the grounding and subsequent refloating of the “BSLE Sunrise” off Valencia in 2012. Owners declared General Average under the York-Antwerp Rules 1974 and in relation to a a cargo of offshore pipes, cargo interests issued General Average bonds with defendant cargo insurers providing security for the bonds in the standard Association of Average Adjusters (AAA)/Institute of London Underwriters (ILU) form. The GA guarantees were addressed to the owner and provided: "In consideration of the delivery in due course of the goods specified below to the consignees thereof without collection of a deposit, we the undersigned insurers, hereby undertake to pay to the ship owners … on behalf of the various parties to the adventure as their interest may appear any contributions to General Average … which may hereafter be ascertained to be properly due in respect of the said goods. We further agree: (a) to make prompt payment(s) on account of such contributions as may be reasonably and properly due in respect of the said goods as soon as the same may be certified by the … Average Adjusters …".” An adjustment was published with the first and second defendant’s shares of the GA loss and expenditure calculated at US$526,365 and US$548,030 respectively. It was common ground between the parties that if the
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pi_circular Steamship Mutual ·2020-04-06

Claims under General Average Guarantees

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