Aspen Underwriting Ltd and others (Appellants) v Credit Europe Bank NV (Respondent)

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Case summary

Case ID

UKSC/2018/0229

Parties

Appellant(s)

Aspen Underwriting Ltd and others

Respondent(s)

Credit Europe Bank NV

Issue

Whether the High Court has jurisdiction to determine the Insurers’ claims against the Bank

Facts

The owners of the ship Atlantik Confidence financed the purchase and working capital with a loan from Credit Europe Bank NV, a bank domiciled in the Netherlands (‘the Bank’). The loan was secured by a mortgage and deed of assignment of the insurance on the vessel, which was issued by 13 underwriters (‘the Insurers’). The vessel sank on 3 April 2013 and became a total loss. The Insurers and owners settled the claim and the insurance proceeds were paid on 16 August 2013 in accordance with a letter of authority provided by the Bank. In a limitation claim, the High Court ruled on 11 October 2016 that the vessel was deliberately sunk by the owners. The Insurers commenced proceedings against the owners and the Bank to recover the insurance proceeds paid under the settlement, on grounds of misrepresentation and mistake and in restitution. The Bank challenged jurisdiction.