In December 2018, the barge NRC Resolute capsized and sank in international waters north of Trinidad in circumstances yet to be fully explained. A disputed insurance claim now sees the warring parties in court; one side suing in New Zealand, the other in Guyana.
Silica Sandport Inc, had insured its barge with a New Zealand-based P&I Club: Maritime Mutual Insurance Association. Unlike a typical marine insurance company which is owned by its shareholders, a Protection and Indemnity Club (P&I) is a member-only club with members agreeing to pool risk according to their P&I rules. No dividends are paid. If claims in any one year exceed premiums collected, a ‘call’ is made on all members to top up the kitty. Silica Sandport’s claim for total loss of its barge at USD1.176 million resulted in a call on members.
The High Court was told Silica has not paid its call. Insurance cover was cancelled. Silica then sued Maritime Mutual in the High Court of Guyana for loss of its barge together with further claims against Maritime alleging misrepresentation, fraud and professional negligence. In Guyana, Maritime is challenging whether the dispute should be heard in that country.
Meanwhile in New Zealand, Maritime Mutual got a High Court ‘anti-suit’ injunction telling Silica it had no right to take legal action in a foreign country without first submitting to the arbitration rules set out in their P&I agreement.
Silica alleges Maritime Mutual has refused to go to arbitration; a claim Maritime disputes.
Maritime Mutual is owned by interests based in Gibraltar. Its directors are based variously in Guernsey, Liechtenstein, Hong Kong, Switzerland and New Zealand.
Maritime Mutual Insurance Association (NZ) Ltd v. Silica Sandport Inc – High Court (14.04.23)
23.045