Does your lawyer also represent your counter party?

Think about it!

Would you be happy if your lawyer also represents your counter party?

Yet that is exactly what you agree to when entering your Charterers’ Liability Insurance with a P&I Club. Imagine you have a large claim from a large Industrial. The contract with the Industrial even had a clause which mentions “all claims to be dealt with by Lawfirm Group of Companies”. You know that Industrial holds a major share in and pays large fees for the services of Lawfirm Group of Companies. You knowingly and willingly agreed to the terms and now you are faced with an exceptional large claim for which the Industrial holds you liable. But luckily you can rely on the Lawfirm Group of Companies to defend your claim. Behind the Chinese Wall, there is another lawyer in the same Lawfirm Group of Companies building a file to find all the proof against you.

Would you accept that?

Now replace Industrial by Ship Owner and Lawfirm group of Companies by IG P&I Club. And all of a sudden it is common practice in shipping.

For those companies who have second thoughts about common practice; Charterama offers independent stand-alone Charterers Liability Insurance for Charterers of vessels who don’t want their lawyer to represent their counter party too.

Please contact your underwriter for any further information about Charterama and/or our product portfolio.

This article is written by Lucien Lesuis.
lucien.lesuis@charterama.com