MAGALLANES SALVAGE COMPANY v. ALLIANCE ASSURANCE COMPANY, LTD.

(1936) 55 Ll.L.Rep. 393

KING'S BENCH DIVISION.

Before Mr. Justice Branson.

Salvage - Contract - Claim by plaintiff salvage company against defendant underwriters to be paid for hire of pumps and work done on steamship Yero Carras insured with defendants -Stranding of vessel in Strait of Magellan - Salvage agreement entered into between plaintiffs and owners on Lloyd's form-Plaintiffs to get £6000 plus further amount to be settled by arbitration-Vessel refloated by plaintiffs and taken to Magallanes -Dispute between owners and underwriters as to whether vessel was a constructive total loss-Owners' claim settled on basis of arranged total loss, "Owners to retain the ship and to assume all liabilities incurred in connection therewith, with the exception of the underwriters' own representative's charges"-Pumping charges incurred during period of dispute-Alleged agreement between underwriters' representative and plaintiffs' representative that underwriters would pay for cost of pumping-Proof of agreement-Correspondence passing between the parties at the time of the salvage operations.