There have recently been notable developments in English law that will be of interest to marine insurers, including the High Court’s consideration of the Hague-Visby Rules in the “Taikoo Brilliance” [2025] EWHC 1878 (Comm), the interpretation of crude oil contract terms in Mercuria Energy Trading SA v Onex DMCC [2026] EWHC 130 (Comm), and a new power for arbitral tribunals to make awards on a summary basis under the Arbitration Act 2025.
The “Taikoo Brilliance”
On appeal by owners and bill of lading holders from an arbitration award for cargo misdelivery, the High Court considered two points of law in respect of the Hague-Visby Rules: whether security proceedings could be considered a “suit” for interrupting the time bar, and the level of detail required to be stated on a bill of lading for cargo to be exempted from the Rules under Article I(c) (deck cargo exclusion).
The Court held that the holders’ security proceedings issued in Singapore had not been brought to decide the claim, so could not be considered a “suit” for the purposes of the time bar at Article III(6). As to the second issue, the Court held that owners’ requirement for a precise definition of the cargo was asking for too much; the wording on the bill will vary depending on the nature of cargo.
Mercuria Energy Trading v Onex
Buyers claimed damages for contaminated Iraqi oil. The contract incorporated the BP’s General Terms & Conditions.
Buyers argued the Sellers failed to deliver cargo ‘in line with’ the typical Organic Chloride content stated in the contract, where ‘in line with’ amounted to a warranty. Sellers argued the definition of ‘typicals’ had to be construed against the BP GTC’s definition i.e., product qualities were given without guarantee.
The Court agreed with the Sellers; the contract should be construed as a whole. The recap terms and the BP GTC terms made up the same contract. Following “The Nounou”, the terms could be read together to give effect to both.
Arbitration Act 2025
Having come into force on 1 August 2025, the Act introduced important amendments to the Arbitration Act 1996, including section 39A, which confers power on tribunals to make an award on a summary basis (in circumstances where a claim may have no real prospect of success).
The power has tactical implications for arbitrations subject to the Act, as parties may be encouraged to settle “weak” claims rather than progress proceedings.
