Inherent vice and perils of the seas: Supreme Court finalises their scope

In Global Process Systems Inc v Syarikat Takaful Malaysia Bhd (‘The Cendor Mopu’) [2011] UKSC 5, the Supreme Court dealt with the interpretation of the ‘inherent vice’ exclusion and in so doing widened the scope of the concept of ‘perils of the sea’. The court held that the exclusion would not apply where the result of weather and sea conditions - albeit they are foreseeable and ordinary - was fortuitous.

The facts

The Cendor MOPU was an oil rig (originally called Odin Liberty) which had been laid up in Galveston, Texas. It consisted of a watertight working platform which could be raised and lowered as required and of three legs made of steel, each weighing 404 tons and of 312 feet in length.