The appellants were the owners of the ss ‘Knight of the Garter,’ and the respondents owned a cargo of coal which she carried. Damage both to ship and cargo was caused by fire under circumstances which are fully narrated in the judgment of the Earl of Halsbury. The appellants made a general average claim in respect of damage to the ship. The respondents counterclaimed in respect of the damaged cargo, hut the appellants contested this on the grounds that it was a loss by fire for which they were free under statute from liability, and also that it arose from the inherent vice of the coal cargo itself. Channell, J., allowed the counter-claim, and this was affirmed by the Court of Appeal.
The shipowners appealed.
Held: In adjustment of general average the damaged portion of the cargo must be taken into account as part of the loss notwithstanding that the damage is due to its ‘inherent vice’ or peculiar liability to damage; section 502 of the Merchant Shipping Act 1894, which relieves the shipowner from liability for loss of goods by fire, does not apply in a case of general average.
Judges:
Earl of Halsbury, Lords Ashbourne, Macnaghten, James of Hereford, and Collins
Citations:
[1908] UKHL 697, 46 SLR 697
Links:
Jurisdiction:
England and Wales
Transport
Updated: 26 April 2022; Ref: scu.621516