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Case details

XL Insurance Company S.E. and others (Appellants) v Quadra Commodities S.A. (Respondent)

Case ID: UKSC 2023/0063

Case summary


Whether, under a contract of property insurance, the assured can have an insurable interest in property forming part of a bulk where the bulk itself is unidentified.


Quadra purchased cargoes of grain (the Cargoes) from (i) Agri Finance SA and (ii) Linepuzzle Ltd and stored them in three grain elevators in Ukraine.

Agri Finance, Linepuzzle and the operators/owners of the elevators were all owned by companies in the Agroinvestgroup.

The delivery and storage of each of the Cargoes in the elevators was evidenced by warehouse receipts issued to Quadra. The Cargoes were stored at the elevators mixed with other grain (rather than on a segregated basis).

In January 2019, it transpired that the Agroinvestgroup companies were operating a large-scale fraud issuing multiple warehouse receipts to different traders for the same grain.

As a result, the warehouse receipts stating that the elevators held grain on behalf of a person (such as Quadra) did not correspond to any grain (either because that grain did not exist or because another party held title to that grain). The effect was that multiple parties holding fraudulent warehouse receipts ended up laying claim to the same grain.

Quadra made a claim under its marine insurance policy. It claimed an indemnity in respect of the Cargoes. XL Insurance argued that there was no property in which Quadra could show an insurable interest.

The High Court found that Quadra could claim under its policy. XL Insurance appealed but the Court of Appeal upheld the decision of the High Court. XL Insurance now appeals to the Supreme Court.

Judgment appealed

[2023] EWCA CIV 432



XL Insurance Company S.E.


Quadra Commodities S.A.