References: [1985] 1 Lloyd’s Rep 437
Coram: Hirst J
Ratio: The LITSION PRIDE was insured against war risks. The terms required of her owners, notice as soon as practicable of her entry into specified war zones and then to pay an additional premium. The owners traded her into a war zone without giving notice, dishonestly intending to avoid the payment of the additional premium if the vessel got out unscathed. When she was hit by a missile and sunk, they gave the required notice by a letter which they dishonestly backdated to a date before the vessel entered the war zone. The fraud was irrelevant to the merits of the claim, because the vessel was held to be insured under a held covered clause with or without prior notice.
Held: The claim was forfeit on the ground that it was a breach of the insured’s duty of good faith. His decision has not fared well in subsequent decisions.
Jurisdiction: England and Wales
Last Update: 26-Sep-18
Ref: 623434