LAZARD BROTHERS & CO., LTD. v. BROOKS.

(1932) 43 Ll L Rep 372

HOUSE OF LORDS.

Before Lord Atkin, Lord Warrington of Clyffe, Lord Tomlin, Lord Thankerton and Lord Macmillan.

Insurance-"In and out" policy-Agreement by appellant bankers to provide A with credit facilities in respect of shipments of hides, appellants to accept drafts drawn by sellers, drafts to be accompanied by invoices and by letters from buyers acknowledging their indebtedness and undertaking to reimburse appellants-Fraud of A and his associates in the transaction- Insolvency-Loss sustained by appellants -Claim under policy-"Whereas [the appellants] are desirous of effecting insurance . . . against the loss or deprivation as hereinafter mentioned" of securities-Operative part of policy covering securities "lost mislaid or accidentally destroyed and whether from within or without and whether by officers, clerks, or servants (whether authorised or unauthorised or on salary, commission, share in profits or apprenticed or otherwise) of the [appellants] or by any other person or persons or by the negligence or fraudulent conduct of the said officers, clerks or servants or other person or persons" and against "any other loss whatsoever through the theft, fraud, larceny, embezzlement or other dishonesty of or forgery by any such officer, clerk, servant, person or persons" - Meaning of "any other loss whatsoever" - "Other person or persons"-Ejusdem generis rule-Proximate cause of loss -Ambiguity-Held, that the operative part of the policy was unambiguous and was therefore not controlled by the recital (the recital was merely a statement that the appellants were desirous of effecting insurance against the loss or deprivation "as hereinafter mentioned" of the specified securities and the fact that the operative part was wider in its scope was not inconsistent with such a desire); that the loss came within the words "any other loss whatsoever"; and that the proximate cause of the loss was the fraudulent LAZARD BROTHERS & Co., LTD. v. BROOKS. 373 obtaining of the acceptances-Appeal allowed-Judgment of Wright, J., restored.