The Zuhal K - Q.B.D. (Adm.Ct.) (Sheen J.) - 5 November 1986

Insurance company bond put up at P & I Club’s request to allow arrested vessel to be released - Payment made under bond - Right to reimbursement

Plaintiff cargo owners claimed against the defendant shipowners in respect of alleged cargo damage. The plaintiffs arrested the defendants’ vessel Selin at Rotterdam. The vessel was entered with the Oceanus P. & I. Club. Oceanus offered a P. & I. Club letter of undertaking in return for releasing the vessel. The plaintiffs were unwilling to accept that because they thought that Oceanus might be financially unable to honour such an undertaking. Oceanus therefore made an agreement with the Home Insurance Co. for the provision of bond guarantees.