Insurers represented by global law firm Clyde & Co have been absolved from a $470 million claim by Norwegian energy company Noreco, a decision that the Danish High Court has called final and unappealable.
The energy construction claim was notified by 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 initially ruled against Insurers in December 2016, awarding Noreco $470 million.
Clyde & Co succeeded in overturning that judgement in May 2018, reversing the initial findings.
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 $12.5 million plus interest.
The High Court made a costs award of $4 million in favour of Insurers, and these costs will now be set off against the judgement sums.
“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,” commented Nigel Chapman, Partner at Clyde & Co.
“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.”
