The Bamburi - Staughton J. (sitting as arbitrator) - Award published 13 January 1982

Ships trapped in the Shatt-al-Arab - Liability of insurers

The Bamburi was one of some 70 vessels trapped in the Shatt-al-Arab as a result of the Iran-Iraq war. The particular issue in the present arbitration was whether the Bamburi was a constructive total loss by reason of an insured peril when the claimant owners gave notice of abandonment on 30 September 1981 and 14 October 1981. However, because the underwriters involved wanted authoritative guidance on other issues not just affecting the parties to the immediate dispute it was agreed that a judge of the Commercial Court should be appointed to arbitrate their claim in accordance with provisions contained in the Administration of Justice Act 1970.