Christie v North British Insurance Company

JurisdictionScotland
JudgeLd. Robertson. M'K.
Judgment Date10 February 1825
CourtCourt of Session (Inner House - Second Division)
Docket NumberNo. 359.
Date10 February 1825
Court of Session
2d Division

Ld. Robertson. M'K.

No. 359.
Christie
and
British

Insurance.

A Wire-Mill, the property of the late John Stead, having heen destroyed by fire on the 80th of May 1811, he raised the present action (afterwards carried on by Christie, &c. as executors qua creditors) against the North British Insurance Company, founding on an alleged contract of insurance, and concluding for payment of a share of loss proportioned to the amount alleged to have been insured with them on the premises. No policy had been delivered; but the pursuers averred, and offered to prove, 1. That Stead, having resolved to effect an insurance on his wire-mill to the extent of L. 5000, applied to the Phœnix Insurance Company (a London office, conducted by an agent in Edinburgh) to take the risk to the extent of L. 2000; that the risk not being one for which there is a known rate of premium, the determination of the amount was referred to the directors in London; and that he also applied to the North British Insurance Company (an Edinburgh office) to take the remaming L. 3000; and delivered an order for insuring the wire-mill to that extent, to the secretary of the office. 2. That the secretary agreed to take the L. 3000 at the same premium which should be fixed by the Phœnix, and to make out and deliver a policy, as soon as that of the Phœnix Office came down from London; and stated to Stead, that in the mean time he might hold himself insured. 3. That Stead twice offered to deposit a sum to cover the premium; but that the secretary declined receiving it as unnecessary; and that afterwards a person employed by the office surveyed the premises insured, and the Phœnix and North British exchanged notes of the terms of insurance. 4. That an entry of the insurance was made in the order-book of the North British; and that in the ledger there was inserted the number of the intended policy, with the date ‘15th May 1811,’ the columns for the insertion of the premium, and terms of insurance, being left blank; and, 5. That, prior to the loss on the 30th May, there had been two meetings of the directors of the North British; and that although no premium had then been fixed by the Phœnix, and no policy sent down, that office paid their share of the loss. It appeared, however, from the correspondence between Mr Stead and that office, that this was done on the express stipulation that it was to be considered a matter of favour, not...

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