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“Captain Panagos DP” Continental Illinois National Bank & Trust Co. Of Chicago And Xenofon Maritime S.A. –v- Alliance Assurance Co. Ltd.

29th Jul 1988

[1989] 2 Lloyd’s Rep. 33

Stephen Kenny acted in this scuttling case concerning the inferences to be drawn from the fact (unchallenged in the Court of Appeal) that a vessel had been deliberately cast away. The beneficial owner of the vessel had died between the date of the loss of his ship and the date of trial. Held, it was to be inferred that the casting away had been done with his connivance. “Ships are not cast away out of lightness of heart or sheer animal spirits” (per Lord Sumner in The Arnus).

Insurance (Marine) – Constructive total loss – Vessel grounded on eastern shore of Red Sea – Vessel suffered damage from major fire – Plaintiffs claimed under policy – Defendants alleged that loss procurred or connived at by owners – Whether loss caused by wilful misconduct of owners – Whether defendants liable under policy – Whether further evidence should be admitted – Whether leave to amend should be granted.

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