Soya GmbH Mainz Kommanditgesellschaft v. White (The Welsh City - and The Corfu Island) - House of Lords (Lords Diplock, Keith, Scarman, Roskill & Templeman) - 9 December 1982

Whether HSSC marine insurance policy covers loss due to inherent vice

The respondents imported a cargo of soya beans from Indonesia to ports in Belgium and the Netherlands between July and September 1973 in the vessels Welsh City and Corfu Island . The cargo was insured by the appellant underwriter under a separate policy covering the risks of “. . . heat, sweat, spontaneous combustion only.” When the beans arrived they were found to be in a heated and deteriorated condition. The appellant rejected the respondents’ claim in relation to those shipments. At first instance Lloyd J. found in favour of the respondents. He found as facts that the moisture content of the beans on shipment was such as to give rise to a risk of heating, and that the cause of the loss was the condition under which the beans were carried. The Court of Appeal dismissed the underwriter’s appeal. On his appeal to the House of Lords: