YOUNG v. MERCHANTS' MARINE INSURANCE COMPANY, LTD.

(1932) 43 Ll L Rep 277

COURT OF APPEAL.

Before Lord Justice Scrutton, Lord Justice Greer and Lord Justice Slesser.

Insurance (marine) - Running down clause - Defendants' policy (covering steamship W against all risks) including running down clause - Reinsurance with plaintiff against total loss only - Total loss of W after collision with steamship M - Vessels found equally to blame - Payment by plaintiff to defendants on total loss basis - Effect of running down clause - Principle of cross-liabilities - Claim by plaintiff to recover proportion of amount deemed to have been received by defendants as due from the owners of the M - Held, that the terms of the running down clause were not included in the reinsurance contract between the plaintiff and the defendants but were res inter alios acta; further, that there was no more than a notional recovery by the owners of the W from the owners of the M; and that therefore the plaintiff's claim failed - Plaintiff's appeal dismissed.