Goods had been insured for the voyage, but were jettisoned on it. The ship completed her voyage, and the owners of the goods became entitled to recover general average contribution from the other interests which had profited from the jettison. Instead they sued underwriters for the totality of their loss.
Held: They entitled to recover the loss.
Willes J explained: ‘Mr. Williams argued the case in the only way which was possible when he said that a case of jettison under the circumstances here detailed did not constitute a total loss of the goods, because in point of law the loss was less than total, by the value of the right which accrued to have compensation for part of the loss from the shipowner and the other owners of cargo. It was so in one sense, because if the vessel or any part of the cargo arrived safely in consequence of the jettison, the owners must contribute to the loss sustained by the owners of the goods so sacrificed for the general advantage; but the goods were totally lost at the time, though their owner had a contingent right to recover from certain persons a portion of their value. The result is that the owner has two remedies – one for the whole value of the goods against the underwriters, the other for a contribution in case the vessel arrives safely in port; and he may avail himself of which he pleases….’
Judges:
Willes J
Citations:
(1868) LR 3 CP 639
Jurisdiction:
England and Wales
Cited by:
Cited – Simpson and Co v Thomson HL 1877
The House discussed the extent of an insurer’s right of subrogation: ‘My Lords, these authorities seem to me to be conclusive that the right of the underwriters is merely to make such claim for damages as the insured himself could have made, and it . .
Cited – Caledonian North Sea Ltd v London Bridge Engineering Ltd and Others HL 7-Feb-2002
Substantial personal injury claims had been settled following the Piper Alpha disaster. Where a contractual indemnity had been provided under a contract, and insurance had also been taken out, but the insurance had not been a contractual . .
Lists of cited by and citing cases may be incomplete.
Insurance, Transport
Updated: 09 May 2022; Ref: scu.191159