E D Sassoon and Co v Western Assurance Co: PC 1912

(Shanghai) A cargo of opium was damaged as a result of ingress of water through a rotten hull.
Held: Losses occasioned by the incursion of water into a vessel’s hull owing to the defective, deteriorated or decayed condition of the hull or ordinary wear and tear are not losses caused by ‘perils of the seas’
‘The learned judge held that the damage was not due to a sea peril at all, but was solely due to the weakness of the hulk, and he thereupon dismissed the action. Their Lordships are of opinion that the learned judge was right. There was no weather, nor any other fortuitous circumstance, contributing to the incursion of the water; the water merely gravitated by its own weight through the opening in the decayed wood and so damaged the opium. It would be an abuse of language to describe this is a loss due to perils of the sea.’

Citations:

[1912] AC 561

Jurisdiction:

England and Wales

Cited by:

CitedGlobal Process Systems Inc and Another v Berhad SC 1-Feb-2011
An oil rig (The Cendor MOPU) was being transported from Texas to Malaysia. During the voyage, three of the four legs suffered damage. The insurers refused liability saying that the damage was the result of inherent weaknesses in the rig.
Held: . .
Lists of cited by and citing cases may be incomplete.

Insurance, Commonwealth

Updated: 23 March 2022; Ref: scu.428507