A shipping corporate brought arbitration proceedings against a state relating to its official’s involvement in, or wilful ignorance of, a long-running fraud
What happened?
The claimant made significant investments in a business venture which failed when the state refused to permit it to perform under its contracts, the majority of which have had to be cancelled resulting in a claim for damages in excess of $300m.
Advised by their General Counsel and chosen legal team, the board decided to buy cover for their solicitor’s fees.
Harbour Underwriting provided cover up to a limit of £3.4m, subject to a 25% deductible.
Summary
The arbitration has been heavily fought and is expected to go to a final hearing in the next year. If the corporate is unsuccessful, they will be reimbursed for 75% of their solicitor’s fees.
