In Denmark, construction all risks insurance covers damage in connection with a construction. It is an 'all risk' insurance, which means that most damage is covered unless directly excluded in the insurance terms. However, primary damage is not generally covered. As several players in the construction industry demanded coverage of primary damage, the London Engineering Group (LEG) introduced the so-called 'LEG3/96' coverage. This article examines challenges associated with LEG3 coverage in Denmark.
The Maritime and Commercial Court recently considered whether a freight on board seller which had received a bill of lading as a receipt for delivery of cargo was bound by said bill of lading's jurisdiction clause. This decision addresses the question of whether a consignor which is not a party to a transport contract but merely delivers cargo to the ship that will perform the voyage may be legally obliged and bound by a jurisdiction clause in a bill of lading.
The Maritime and Commercial Court recently held that Danish proceedings could not proceed as earlier Dutch proceedings concerned the same issue of liability, which meant that there was a risk of conflicting judgments if the cases were heard separately. The decision underlines the importance of being aware of the relevance of legal steps taken with respect to matters concerning the Convention on the Contract for the International Carriage of Goods by Road in other jurisdictions.
In two previous verdicts a district court found that prorogation of jurisdiction can be validly agreed in a yacht insurance contract, even where consumer interests are concerned and the contract requires that legal proceedings be brought in a court in the insurer's home country. In a recent decision, a high court found that the European Court of Justice (ECJ) should be asked for a preliminary ruling. The question for the ECJ is does the EU directive regarding 'large risks' include vessels bought for private use?
The Maritime and Commercial Court recently determined whether a Danish carrier was liable for the theft of €172,000 worth of toys which had been stolen from a subcarrier's trailer while it was parked at night. In its decision, the court considered whether the parking spot complied with the safety arrangements set out in the transport agreement.
The Maritime and Commercial Court recently ruled that a charter agreement was binding on a charter even though a conditional test of the vessel was not performed. This decision shows that a party which wishes to enter into a conditional chartering agreement must formulate the condition clearly and, in negotiations on the conclusion of the agreement, maintain the reservation in question.
The Maritime and Commercial Court recently held that there is no basis for an interpretation that the time limit for a recourse claim can be extended beyond the total time limit of two years. Thus, the time limit for a recourse claim between sea carriers for damage to cargo which falls under the Merchant Shipping Act is, as a general rule, a maximum of two years from the date on which the damaged cargo was delivered.
The Danish Maritime and Commercial Court recently rejected a jurisdictional claim in a dispute between a Danish shipowner and a Spanish shipyard. It follows from the judgment that a jurisdiction clause in a repair contract in some instances requires that the party which receives the other party's general terms and conditions must accept the jurisdiction clause in writing in order for it to be binding between the parties.
In a recent ruling on the recharge of the sum insured in a project liability insurance policy, the Danish Building and Construction Arbitration Board ruled that the obligation to recharge was incumbent on the policyholder (adviser), regardless of whether the client had requested it or not. This article examines the ruling and highlights the conditions that parties should be aware of when refilling.
The Maritime and Commercial Court recently examined a compensation claim for stolen champagne. The customer argued that the carrier should have taken precautions to protect the goods against theft. However, the court decided that the carrier could limit its liability for the theft. The judgment is in line with Danish court practice concerning liability for the theft of high-value and exposed goods.
A Danish court recently found a freight forwarder to be vicariously liable to a Danish company for fire damage caused to cargo carried by a subcontractor. The judgment suggests that a contracting carrier may incur liability where a general average situation is deemed to have occurred if it fails to provide information to its customer about the concrete circumstances that give rise to the general average situation, even when the contracting carrier holds no information about said circumstances.
This article provides options for companies which have a claim against a bankrupt tortfeasor and discusses Section 95 of the Insurance Contracts Act, which gives creditors the right to raise a claim directly against a tortfeasor's insurer. However, this right is forfeited if the applicable deadlines are not met.
The execution of 'hot work' (ie, work which carries the risk of fire) often results in fires. Therefore, anyone who executes or arranges for the execution of hot work should be aware of how damages and possible liability for damages can be avoided. Hot work insurance policies should also be thoroughly examined. This article highlights the rules that craftspeople, contractors and clients must consider before and during the execution of hot work, as well as the associated liability issues.
A new ruling determines that prorogation of jurisdiction can be validly agreed in a yacht insurance contract, even where consumer interests are concerned and the contract requires that legal proceedings be brought in a court in the insurer's home country. Pursuant to the ruling, a private policyholder who is an EU citizen and purchases boat insurance in another EU country is bound by the jurisdiction agreement in the insurance contract.
A recent Maritime and Commercial Court case examined a claim for damage to goods during unloading under the Convention on the Contract for the International Carriage of Goods by Road (CMR). The court found that a CMR carrier is not liable for damage in connection with the unloading of goods irrespective of whether the unloading was performed by a driver, as drivers in such instances may be deemed to act on behalf of consignees.
The Danish High Court recently addressed whether legal proceedings against a Danish shipping company, which had contracted to carry containers from China to Copenhagen, could proceed in Denmark irrespective of the fact that the claimant and the shipping company had agreed that the dispute should be heard exclusively by the UK High Court. The Danish High Court decided that the case could nevertheless be heard in the substance by the Danish courts.
The Maritime and Commercial Court recently examined whether the theft of tobacco products was covered under the cargo policy agreed between a wholesaler and a carrier and whether the wholesaler's insurer was liable. It is clear from the judgment that cargo insurance coverage under the Danish Extended Conditions requires that the transport of insured goods commences immediately after loading onto the means of transport has taken place.
A recent Maritime and Commercial Court decision concerned carrier liability for temperature damage to a consignment of pharmaceuticals. The court's judgment signals that carriers must make quick decisions and implement actions to respond to temperature alarms in order to avoid unlimited liability.
The Maritime and Commercial High Court recently examined a direct action claim against a Dutch freight liability insurer in a carriage of goods by road dispute involving a bankrupt carrier and a Danish manufacturer of cigarettes. The premise relied on by the court in this matter, if not appealed, may seem ripe to undermine some insurance policies between liability insurers and international carriers, including proper law provisions and time limitation under a policy.
A recent Maritime and Commercial Court decision in which a carrier was found liable for a missing delivery underlines the importance of getting transport documents signed as a receipt for goods delivered. A signed transport document is the carrier's proof of delivery. Hence, in case of doubt as to whether delivery has taken place, the transport document serves as compelling evidence.