UK & Europe
Global law firm Clyde & Co has now received confirmation from the Danish Court that the favourable High Court decision absolving Insurer clients of a USD 470m claim stands as final and unappealable.
The energy construction claim was notified by Norwegian energy company Noreco against a group of international insurers in 2009. Noreco claimed that its all-risk insurance policy should pay for damage to the Siri oil platform in the Danish sector of the North Sea, which forced three fields to shut down.
The Danish Maritime and Commercial Court ruled against Insurers in December 2016, awarding Noreco USD 470m. Clyde & Co succeeded in overturning that judgment in May 2018, reversing the findings of the first instance Court.
Noreco applied for permission to appeal to the Danish Supreme Court but the Appeals Permission Board yesterday declined Noreco's application. The Board's decision is final and cannot be appealed.
The High Court judgment therefore now stands as good law in Denmark. The main coverage finding was that the fatigue damage to the platform had occurred long before any of the policies on risk in the proceedings, such that no cover fell due.
The High Court ruled that some limited elements of the early costs were recoverable as 'sue and labour', and this award amounts to USD 12.5m plus interest. The High Court made a costs award of USD 4m in favour of Insurers, and these costs will now be set off against the judgment sums.
Clyde & Co's team was led by partner Nigel Chapman and associates Anna Myrvang and Sophie Shiffman. Clyde & Co worked with two Copenhagen Law firms; Nielsen Norager and Poul Schmith. Clients very closely involved in the effort include QBE, AIG, Lancashire, AXA XL, Zurich and Gard.
Nigel Chapman, partner at Clyde & Co, comments: "We are very pleased finally to have brought this long running dispute to a close, and at a figure comfortably within our original assessment of exposure even including costs expended. Following the adverse first instance judgment in 2016, clients were carrying significant reserves which can now be released, providing those insurers with a good start to the fourth quarter 2018".