NEWCASTLE PROTECTION AND INDEMNITY ASSOCIATION LTD. v. ASSURANCE FORENINGEN GARD GJENSIDIG

[1998] 2 Lloyd's Rep. 387

QUEEN’S BENCH DIVISION(COMMERCIAL COURT)

Before Mr. Justice Colman

Carriage by sea - Letter of guarantee - Construction - Indemnity - Damage to cargo - Dispute between shipowners and charterers referred to arbitration - Charterers in liquidation - Composite settlement agreed in respect of damage claims with receivers - Whether plaintiffs entitled to be indemnified by defendants in respect of amounts paid in settlement - Whether settlement reasonable - Consequences of liquidation of charterer - Whether LOG imposed condition precedent to recovery of indemnity - Whether condition of cargo gave rise to right of shipowner to be indemnified by charterers - Whether composite settlement payment a reasonable amount to pay to settle all claims - Proportion of total payment attributable to claim settlement giving rise to indemnity or damages.