Recovery of costs after total loss by fire of motor yacht

We were instructed by the owner and hull underwriter in respect of a total loss by fire of a 20m motor yacht, which was destroyed when moored at a marina in Corfu, Greece. The fire spread to three other yachts which also became a total loss, requiring a significant anti-pollution and clean-up operation. The fire caused losses in excess of £3 million.

As legal advisors, we were instructed to attend the yacht with an investigator to examine the cause of the fire and interview the crew. We used team members from our Greek office to assist with the initial response, including dealing with the authorities and investigations. We also worked closely with loss adjusters and local lawyers in respect of matters relating to the removal of the wreck.

Proceedings were issued in the Admiralty Court in London, seeking an order that our clients were entitled to limit their liability pursuant to the provisions under section 185 of the Merchant Shipping Act 1995. We recently faced an application to challenge the jurisdiction of this claim which we successfully defeated, and we have now obtained an order from the Admiralty Court limiting our client’s liability for all loss and damage suffered.

The costs team dealt with the recovery of the costs involved (in excess of £100,000) in relation to jurisdiction and limitation issues. We also prepared a submission in respect of the costs regarding the VAT position between the insurer individual and Greek company.

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