*Sveriges Angfartygs Assurans Forening (The Swedish Club) and others v Connect Shipping Inc and another

Shipping – Insurance claim. The 'cost of repairing the damage' for the purpose of determining whether the vessel had been a constructive total loss (CTL) within the meaning of s 60(2)(ii) of the Marine Insurance Act 1906, included all the reasonable costs of salving and safeguarding the vessel from the time of the casualty onwards, together with the prospective cost of repairing her. Accordingly, the Supreme Court dismissed the appellant insurers' appeal against the Court of Appeal, Civil Division's decision on that issue. However, the Supreme Court further held that charges payable to salvors under the Special Compensation, Protection and Indemnity clause of Lloyd's Open Form were not part of the 'cost of repairing the damage' for the purpose of s 60(2)(ii) of the Act, and allowed the appellants' appeal on that matter. Consequently, the judge's order was set aside and the matter was remitted to him to determine, in the light of the Court's judgment, whether the vessel had been a CTL and what financial consequences followed from that.

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