Supreme Court Intervenes to Review the Court of Appeal Decision on Inherent Vice

Supreme Court - Marine Insurance - 'Inherent Vice'

(1) Global Process Systems Inc (2) Global Process Systems (Asia Pacific) SDN BHD v Syriakat Takaful Malaysia Berhad - ‘CENDOR MOPU'

The Supreme Court has granted permission to appeal in what will be the leading case on the meaning of ‘inherent vice' in marine insurance. The Court of Appeal has set a new test which seems to have considerably narrowed the scope of the standard exclusion of inherent vice which appears in almost all marine cargo policies. The new test appears to conflict with a statement of principle by the House of Lords, two Court of Appeal judgments in England, a British Colombia Court of Appeal decision and an English first instance decision. The Supreme Court has now intervened to restore clarity to what cover is provided by standard marine insurance policies for cargoes the world over.

Steven Gee QC of Stone Chambers instructed by Kamal Mukhi of Hill Dickinson LLP will be acting on behalf of the Insurers in the Supreme Court in July 2010.