On 21 April 2023 the Court of Appeal handed down its judgment in Quadra Commodities SA v XL Insurance Company SE & Ors [2023] EWCA Civ 432.

Both at first instance and on appeal, the question considered was whether, under a Marine Cargo Open Policy, Quadra, the Policy-holder had an insurable interest in cargoes of grain which were purchased by them and in respect of which they were subsequently victims of a fraud perpetrated by their sellers.

Mr Justice Butcher ("Butcher J") ruled in favour of Quadra at first instance, deciding that Quadra had an insurable interest. Permission to appeal was granted but the Court of Appeal ultimately upheld the decision. The decision of the Court of Appeal provides welcome clarity on the question of insurable interest, particularly as it relates to unascertained goods.

Click here to read more.