Reinsurance – claim by owner on original policy – failure by reason of scuttling – judgments against owner for costs – impossibility of recovery – claim on reinsurance policy – sue and labour clause
A ship was reinsured under a marine policy with the plaintiffs, who had reinsured but for total loss only. The claim by the owner against the plaintiffs failed because the ship had been scuttled, but the claimant sought the costs of defending the action. In the reinsurance policy there was a sue and labour clause.
Held: The sue and labour claus ewas of no effect in this situation.
Citations:
(1924) 19 LI L Rep 131, 41 TLR 35, 20 Ll Rep 44
Jurisdiction:
England and Wales
Cited by:
Cited – Baker v Black Sea and Baltic General Insurance Co Ltd HL 20-May-1998
The question agreed to be before the court was ‘Where an insurer incurs costs in investigating settling or defending claims by his insured, can the insurer recover a proportion of these costs under a quota share or other form of proportional . .
Lists of cited by and citing cases may be incomplete.
Insurance
Updated: 11 June 2022; Ref: scu.179310