A Court of Appeal decision handed down today with the leading judgment given by Hamblen LJ.
A case involving the capture of the vessel by Somali pirates, subsequent negotiations, payment of ransom, and other expenses incurred by Owners/her insurers during the period of kidnap.
It is well known that ransom payments are allowed under Rule A of the York-Antwerp Rules. The issue on this appeal was whether the vessel operating expenses incurred during the period of negotiation ("the negotiation period expenses") were allowable in General Average as substituted expenses under Rule F.
The Court of Appeal held that these negotiation period expenses were not allowable, although expenses incurred in dealing with the piracy itself such as costs of professional media response services were allowable under Rule A.