[2017] EWHC 1904 (Comm); [2017] 2 Lloyd’s Rep. 295

Peter Macdonald Eggers QC and Sandra Healy act for the Claimants, who are hull and machinery insurers, in an action to recover insurance proceeds paid by them, under or pursuant to a settlement agreement, to the owner, manager and mortgagee of the vessel Atlantik Confidence which was lost at sea on 3 April 2013.

The Claimants allege that the loss of the Atlantik Confidence was caused by the wilful misconduct of the owner and the manager of the vessel.  The claims brought by the insurers include claims against the owner, manager and mortgagee bank for damages in deceit, for negligent misrepresentation and/or pursuant to sections 2(1) and/or 2(2) of the Misrepresentation Act 1967 and a claim for restitution of the sums paid under or pursuant to the settlement agreement for mistake.

The mortgagee bank challenged jurisdiction.  The jurisdiction challenge application raised a number of interesting issues relating to jurisdiction.  The net effect of Teare J’s findings on these issues is that the English court has jurisdiction over the misrepresentation claim against the bank, but not the claim for restitution of the insurance proceeds.

Both sides have been granted permission to appeal.