Insurance company Axa Royale Belge SA has failed in its renewed attempt to ward off a £2.5m claim in respect of damage caused by dredging operations in Southampton Water.
The claim was made by Jan de Nul (UK) Ltd, an English subsidiary of a Belgian company, which contracted with Associated British Ports (ABP) to carry out the dredging.
The Court of Appeal has upheld a High Court ruling that under a third-party policy taken out by Jan de Nul with Axa, and under which ABP was co-insured, Axa is liable.
The court found that siltation caused by the dredging operation gave rise to justified complaints from the operators of wharves, yacht clubs and others at the side of the estuary, who claimed interference with navigation and use of slipways and moorings.
The £2.5m cost of remedying what had happened was initially met by Jan de Nul and ABP jointly.
The High Court held that Jan du Nul was entitled to recover the bulk of that money under the insurance policy, and that decision has now been backed by the Court of Appeal.
The Appeal Court judges rejected arguments by AXA that, under the terms of the insurance, there should be no payment in respect of damage caused by the policyholder failing properly to carry out obligations under the contract, and no payment unless damage had actually been caused to property.
ALIGN=”JUSTIFY”>Jan de Nul (UK) Ltd v AXA Royale Belge SA (formerly NV Royale Belge) Court of Appeal (Schiemann, Hale and Rix LJJ) 20 February 2002.
PLS News 22/02/02
