CL-2024-000668 - [2025] EWHC 2788 (Comm)

The following is a brief summary, drawn from the Appeal Board’s Appeal Award dated 13 November 2024 (‘the Appeal Award’).

The underlying contract of sale was dated 3 May 2021 and provided for the sale of 17,000 mt of Brazilian soybeans by the Claimant sellers to the Defendant buyers on CIF Aliaga, Turkey terms.

The vessel arrived in Aliaga on 9 May 2021, and it was observed on arrival that the cargo was in a damaged condition.

The Claimant had not sought an insurance certificate covering the carriage to Turkey until 12 May 2021. At that point the Claimant sought such a certificate, without, as the Defendant contended, disclosing to insurers that the cargo had arrived in a damaged condition.

The insurers issued a revised certificate of insurance, which was forwarded to the Defendant on 18 May 2021.

On 21 June 2021, the Claimant’s insurance brokers informed the Defendant’s sub-buyers that the insurers had rejected insurance cover, ‘claiming same to be null and void’. Through brokers, insurers confirmed their position on 23 June and 9 July 2021, giving reasons including that the damage was already known prior to the insurance cover being taken out by the Claimant but this had not been disclosed.