Atlantik Confidence deliberate sinking (Oman)
A bulk carrier carrying steel caught fire and sank off Oman in April 2013. An English court found in 2016 that it had been sunk deliberately at the request of the person it described as the owners' alter ego; the hull underwriters, who had paid US$22 million, then sued to recover the money.
Figures from the High Court judgment of 2016; the ship was bought in 2010 for US$15m.
Status As of 2020: the High Court found the sinking deliberate (2016); the UK Supreme Court held the bank must be sued in the Netherlands; no final recovery outcome found.
- Credit Europe Bank (lending bank) — Received the US$22m hull insurance proceeds, for a ship with a market value of about US$6.5m. High Court of Justice (Admiralty Court), via Quadrant Chambers
- The hull underwriters — Paid US$22m in August 2013 and sued to recover it; the outcome is not given in the sources. UK Supreme Court (National Archives case law)
- Axa Insurance (Gulf), cargo insurer — Claimed about €10.2m; the owner's attempt to cap liability at about £7.3m was defeated. High Court of Justice (Admiralty Court), via Quadrant Chambers
- The sea off Masirah Island — The ship sank in deep water; the sources give no pollution figures. High Court of Justice (Admiralty Court), via Quadrant Chambers
What happened
The bulk carrier Atlantik Confidence, carrying steel loaded in Turkey for the Muscat airport passenger terminal, caught fire on 30 March 2013 and sank on 3 April 2013 off Masirah Island, Oman. It sank in deep water. The sources give no pollution figures.
In Kairos Shipping & Standard Club Europe v Enka & Co & Axa [2016] EWHC 2412 (Admlty), Mr Justice Teare found that the fire was set and that the ship was flooded deliberately through the engine room and double-bottom tanks. The judgment states: "The vessel was deliberately sunk by the master and chief engineer at the request of Mr. Agaoglu, the alter ego of the Owners." (para 317).
Hull insurance proceeds of US$22m went to the lending bank, Credit Europe Bank. The ship's market value was about US$6.5m; it had been bought in 2010 for US$15m. All group companies were found to be "balance sheet insolvent". The judge found that Mr Agaoglu "lied about the destination of the insurance proceeds" (para 314).
The hull underwriters paid in August 2013 and then sued the owner and the bank to recover the money. In Aspen Underwriting v Credit Europe Bank [2020] UKSC 11 the UK Supreme Court held that the bank had to be sued in the Netherlands. The sources do not give the final outcome of that recovery.
The cargo insurer, Axa Insurance (Gulf), claiming about €10.2m, defeated the owner's attempt to cap its liability at about £7.3m. The Court of Appeal refused permission to appeal in 2017, according to a law-firm summary.
- 2010Ship bought for US$15m
- 2013Fire on 30 March; ship sinks on 3 April off Masirah Island, Oman; hull underwriters pay US$22m in August
- 2016High Court (Admiralty), Teare J, 11 October: vessel deliberately sunk; Axa defeats the owner's liability cap
- 2017Court of Appeal refuses permission (law-firm summary)
- 2020UK Supreme Court: Aspen Underwriting v Credit Europe Bank; the bank must be sued in the Netherlands
What was said
“The vessel was deliberately sunk by the master and chief engineer at the request of Mr. Agaoglu, the alter ego of the Owners.”
“lied about the destination of the insurance proceeds”
“balance sheet insolvent”
Where accounts differ
Each party's account, side by side, with its source. The record does not settle these points; it shows them.
Found the fire was set and the ship flooded deliberately; "deliberately sunk by the master and chief engineer at the request of Mr. Agaoglu, the alter ego of the Owners."
High Court of Justice (Admiralty Court), via Quadrant ChambersPaid US$22m in August 2013 and then sued the owner and the bank to recover it.
UK Supreme Court (National Archives case law)Sought to limit liability to about £7.3m.
High Court of Justice (Admiralty Court), via Quadrant ChambersClaimed about €10.2m and opposed the cap.
High Court of Justice (Admiralty Court), via Quadrant ChambersAxa defeated the owner's attempt to cap liability; the Court of Appeal refused permission in 2017 (law-firm summary).
High Court of Justice (Admiralty Court), via Quadrant ChambersSued the owner and the bank to recover the money.
UK Supreme Court (National Archives case law)The bank must be sued in the Netherlands.
UK Supreme Court (National Archives case law)How it looked
Shown
Recorded
- The court found the fire was set and the ship flooded deliberately through the engine room and double-bottom tanks.
- Hull insurance proceeds of US$22m went to the lending bank, Credit Europe Bank; the ship's market value was about US$6.5m.
- Hull underwriters paid in August 2013 and then sued the owner and the bank to recover.
- The UK Supreme Court held that the bank must be sued in the Netherlands.
Who gained
Reached nature or the ground
Gained elsewhere
Responses on record
- Hull underwriters (2013; UK Supreme Court 2020): Paid US$22m in August 2013, then sued the owner and Credit Europe Bank to recover it. · UK Supreme Court (National Archives case law)
- axa-insurance-gulf (11 October 2016): Claimed about €10.2m as cargo insurer and defeated the owner's attempt to cap its liability at about £7.3m. · High Court of Justice (Admiralty Court), via Quadrant Chambers
In court and with insurers
Lawsuits and rulings
- 2016-10-11Defendant won£7300bn Limit of liability the owner sought (about); Axa claimed about €10.2mKairos Shipping & Standard Club Europe v Enka & Co & Axa [2016] EWHC 2412 (Admlty)High Court of Justice (Admiralty Court), Teare J · Civil · Kairos Shipping and Standard Club Europe (seeking to limit liability) → Enka & Co; Axa Insurance (Gulf)
The court found that the fire was set and the ship flooded deliberately through the engine room and double-bottom tanks, and that it was deliberately sunk by the master and chief engineer at the request of Mr Agaoglu, the alter ego of the owners. Axa, the cargo insurer, defeated the owner's attempt to cap its liability. High Court of Justice (Admiralty Court), via Quadrant Chambers
- 2017Defendant wonKairos Shipping v Enka (application for permission to appeal)Court of Appeal (England and Wales) · Appeal · Kairos Shipping and Standard Club Europe → Enka & Co; Axa Insurance (Gulf)
The Court of Appeal refused permission to appeal, according to a law-firm summary; no primary record was seen.
- 2020Outcome not on recordAspen Underwriting v Credit Europe Bank [2020] UKSC 11UK Supreme Court · Appeal · Hull underwriters (case reported as Aspen Underwriting) → Credit Europe Bank
The court held that the bank must be sued in the Netherlands. The sources do not give the final outcome of the recovery of the US$22m. UK Supreme Court (National Archives case law)
Insurers
- 2013Paid$22000bn Hull insurance proceeds paid in August 2013; paid to the lending bank, Credit Europe BankHull underwriters → The shipowner (Atlantik Confidence)Stated reason: The court later found the ship had been deliberately sunk; the underwriters sued to recover the payment.
The hull underwriters paid US$22m in August 2013 and then sued the owner and the lending bank to recover it. The UK Supreme Court held in 2020 that the bank must be sued in the Netherlands; the final outcome was not found. UK Supreme Court (National Archives case law)
- 2016In litigation€10200bn Cargo claim (about)Axa Insurance (Gulf) → Cargo interests
As cargo insurer, Axa claimed about €10.2m and defeated the owner's attempt to cap its liability at about £7.3m (High Court, 11 October 2016). Whether the claim was paid is not stated in the sources. High Court of Justice (Admiralty Court), via Quadrant Chambers
What nature saw
Nature's report opens this page. Below: further outcomes measured on the ground.
What we don't know
Nature
- Not measured Harm to nature: The record holds no measurement of harm to nature.
Court
- Unclear Aspen Underwriting v Credit Europe Bank [2020] UKSC 11: outcome not on record.
Accounts
Record
- None on record No pollution figures are given in the sources reviewed, and nothing on the effect of the sinking on the sea or coast.
- None on record The final outcome of the hull underwriters' US$22m recovery action (Dutch forum) was not found.
- Unclear Whether Axa's cargo claim of about €10.2m was paid is not stated.
- Disputed Sources conflict on the ship's value: the 2016 judgment records a market value of about US$6.5m and a 2010 purchase price of US$15m; a separate account without a source link gives about US$13.5m in one place and about US$6.5m in another.
- Disputed Sources conflict on the date and naming: the judgment is dated 11 October 2016 and names Mr Agaoglu as the alter ego of the owners; a separate account without a source link dates the High Court findings to 2019 and names the shipowner as Iliopoulos.
- Insufficient Reported but not independently verified (account without a source link): that the people who attacked the ship had only pretended to be pirates and that the court held an attempted insurance fraud is not piracy.
- Insufficient Reported but not independently verified (account without a source link): that the cargo was misdeclared to avoid customs duty in China; who made that finding is not stated.
- Insufficient Reported but not independently verified (account without a source link): a claim of about US$77 million, with no information on who claimed it or from whom.
Did the harm stop?
The ship sank on 3 April 2013; the sources give no pollution figures and no later monitoring.
Who paid?
The hull underwriters paid US$22m in August 2013, which went to the lending bank; the underwriters then sued to recover it, and the sources do not record the outcome.
Sources
Courts
- Kairos Shipping & Standard Club Europe v Enka & Co & Axa [2016] EWHC 2412 (Admlty) (judgment PDF hosted by Quadrant Chambers)High Court of Justice (Admiralty Court), via Quadrant Chambers · 2016-10-11
- Aspen Underwriting v Credit Europe Bank [2020] UKSC 11UK Supreme Court (National Archives case law) · 2020