Mitsui & Co. and others v Beteiligungsgesellschaft LPG Tankerflotte
The Court of Appeal has reversed the 2014 High Court judgement that crew wages and fuel consumed during lengthy ransom negotiations with Somali pirates could be allowed as general average under Rule F. The Court of Appeal held that Rule F cannot be applicable because there was only ever one course of action available – to pay the ransom. The position under English law therefore reverts to the position taken in 2012 by the majority on the Advisory Committee of the Association of Average Adjusters that such costs were not allowable under Rule F. The judgement also makes some interesting points on the requirement of reasonableness under Rules F and XIV of the York Antwerp Rules. The case involved a chemical tanker that was seized on 29