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In 2014 the High Court held that crew wages and fuel consumed during lengthy ransom negotiations with Somali pirates could be allowed as general average under Rule F as a n expense occured in substitution for the higher cost of paying the initial ransom demand. Following this judgement, some requests were made to re-open earlier adjustments where such costs had been excluded and the same principle was extended in some adjustments to similar expenses incurred while negotiating with salvors.

The Court of Appeal has now reversed this judgememt on the basis that Rule F cannot be applicable because there was only ever one course of action available - to pay the ransom. 

The position under English law therefore reverts to the position taken in 2012 by the majority on the Advisory Committee of the Association of Average Adjusters that such costs were not allowable under Rule F. This decision also makes it clear that Rule F has no application regarding such detention expenses during salvage negotiation. 

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