Graham Joint Stock Shipping Company Ltd v Merchants' Marine Insurance Company Ltd
| Jurisdiction | England & Wales |
| Judgment Date | 18 December 1923 |
| Date | 18 December 1923 |
| Court | Court of Appeal |
House of Lords
Lords Cave, L.C., Finlay, Haldane, Sumner, and Parmoor.
Graham Joint Stock Shipping Company Limited v. Merchants' Marine Insurance Company Limited
Insurance (Marine) — Policy taken out by owner of ship — Money lent on agreement for mortgage
Decision of the Court of Appeal (ante, p. 76; 128 L. T. Rep. 611; (1923) 1 K. B. 592)affirmed.
300 ASPINALL'S MARITIME LAW CASES. H.L.] GRAHAM JOINT STOCK SHIPPING Co. v. MERCHANTS' MARINE INSURANCE Co. [H.L. House of Lord NOv 1, 2, and Dec. 18, 1923. (Before Lords CAVE, L.C., FINLAY, HALDANE, SUMNEII, and PAHMOOU.) GRAHAM JOINT STOCK SHIPPING COMPANY LIMITED v. MERCHANTS' MARINE INSURANCE COMPANY LIMITED. (a) ON APPEAL FROM THE COURT OF APPEAL IN ENGLAND. Insurance (Marine) - Policy taken out by owner of ship - Money lent on agreement for mortgage - Scuttling of ship - Claim by lenders against underwriters. The plaintiffs advanced a sum of money to a shipowner upon the security of 'a first mortgage on the whole of the ship. A policy, on the instructions of the ?? was then taken out by ?? ??;their own names and (or) as age ?? ?? and machinery of the ship ?? ?? the- seas, barratry of master . and all other perils. While the polici ?? .??" force the vessel was scuttled by the ??JHI.-..Y and crew with the connivance of the shipowner. In an action brought OH the policy against the marine risk underwriters by the plaintiffs as mortgagees, Held, that the proper inference to be drawn from, the evidence was that the plaintiffs were not independently insured under the policy. The insurance was effected on behalf of the ship-owner and the title of the plaintiffs rested upon an equitable assignment from him. The plain o tiffs were, therefore, not entitled to recover upon the policy as it was found that the vessel had been scuttled by the authority of the owner. Decision of the Court of Appeal (ante, p. 78 ; 128 L. T. Rep. 611 ; (1923) 1 K. B. 55)2) affirmed. APPEAL from a decision of the Court of Appeal (reported ante, p. 76 ; 128 L. T. Rep. 611 : (1923) 1 K. B. 592). In 1919, one Angelis, a Greek shipowner, contracted with a firm of shipbuilders in Sundcrland that they should build for him a steamer, the. Joanna, for 330,000l. Angelis then arranged with the plaintiffs, who were a linn carrying on business in Glasgow, that in consideration of a mortgage of the steamer to be granted to them when she was completed, they would provide moneys payable from time to time to the shipbuilders as construction proceeded. The plaintiffs provided the necessary funds, and the steamer was completed in May 1920. On the 28th July 1920 an agreement for a mortgage was executed giving the plaintiffs a mortgage on the steamer for 145.000/. On the 15th June 1920 a policy was taken out by certain brokers in their own names and (or) as agents upon the hull and machinery of the steamer for twelve months from the 29th May 1920 in the sum of 15,000l.against, inter alia, perils of the sea and barratry of master and mariners, and the vessel proceeded on a voyage to the United States. On the 31st Jan. 1921 she left an American, port with a cargo of...
To continue reading
Request your trial