In March 2018, the Supreme Court (sitting on a bench of Lord Mance, Lord Sumption, Lord Carnwath, Lord Hughes, Lord Briggs) will hear this appeal relating to the interpretation and l interaction between the clauses of the standard form Institute War and Strikes Clauses 1/10/83. The Supreme Court will consider whether exclusion clause 4.1.5, for losses arising from detention for reasons of breach of customs regulations, operates to exclude cover where the breach of customs regulations has occurred as a result of an insured peril. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original EssayThe appellants were the owners of a vessel called "B Atlantic". He took out war risk insurance with the defendants under the Institute War and Strikes 1/10/83 clauses with additional risks. On August 13, 2007, in a Venezuelan port, divers inspected the ship and discovered 132 kg of cocaine tied to the hull by an unknown person. This violated Venezuelan law and, as a result, local authorities arrested the vessel and convicted the captain and second officer. The owners eventually abandoned ship and claimed a constructive loss under the war risk policy. The policy provided coverage against loss or damage to the vessel caused by any person acting maliciously. Also excluded are loss, damage, liability or expenses arising from detention or confiscation due to violation of any customs or trade regulations (the "Exclusion"). The insurers accepted that the owners and crew were not complicit in the smuggling and the litigation proceeded. on that basis. The insurer also accepted that the vessel constituted a deemed loss but denied cover on the basis that the detention occurred due to breach of customs regulations. Please note: this is just a sample. Get a custom paper from our expert writers now. Get Custom EssayThe owners argued that, on a proper construction of the policy, clause 4.1.4 did not exclude losses arising from an insured peril, i.e. the willful acts of a third party under the clause 1.5.