Farr Man & Co. Inc. v. The Rozita - U.S. Court of Appeals (1st Circuit) (Coffin C.J. and Torruella and Selya C.J.J.) - 22 May 1990

Marine insurance - Whether insurer can recover against its insured

Farr Man & Co. contracted to supply a quantity of bulk raw sugar to Amstar Corporation. The contract was a standardised Amstar form providing for payment on c.i.f. terms. The cargo was shipped on board the vessel Rozita in Bombay. Pursuant to its contract with Amstar, Farr Man obtained a $25,000,000 cargo open cover insurance policy on the sugar from Lloyd’s Underwriters. While the vessel was en route to the United States, Farr Man sold half of its ownership interest in the cargo to Woodhouse, and an appropriate endorsement was made on the cargo insurance policy.