The ship was insured against the perils of the sea by a policy containing a warranty against all consequences of hostilities. While voyaging to Le Havre, she was torpedoed by a German submarine 25 miles from port. She began to settle by the head, but helped by tugs got to Le Havre and was taken alongside a quay in the outer harbour. A gale caused her to bump against a quay and the harbour authorities, fearing that she would block the quay, ordered her to moor at a berth inside the outer breakwater. She was there for two days, taking the ground at each ebb tide, but floating with the flood. At last her bulkheads gave way and she sank, becoming a total loss. In an action brought by the shipowners on the policy claiming to recover as for loss by perils of the sea, the House of Lords held that the grounding of the vessel was not a novus casus interveniens and that the torpedoing was the proximate cause of the loss and that consequently the underwriters were protected by the warranty against all consequences of hostilities. The ‘proximate cause’ under the 1906 Act need not always be the event closest in time to the incident. The proximate cause is that which is proximate in efficiency.
Citations:
[1918] AC 350
Statutes:
Marine Insurance Act 1906 55(1)
Jurisdiction:
England and Wales
Cited by:
Cited – Global 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: . .
Cited – Petroleo Brasileiro Sa v Ene Kos 1 Ltd (‘The MT Kos’) SC 2-May-2012
The MT Kos had been chartered by the appellants. The respondents failed to make payments, and notice was given to withdraw the vessel. The contract said that such a notice was without prejudice to any claim. At the time, the vessel was laden. The . .
Lists of cited by and citing cases may be incomplete.
Insurance
Updated: 15 May 2022; Ref: scu.428477