LONDON ASSURANCE v. CLARE AND ANOTHER. ADAIR AND OTHERS v. SAME. BRITISH EQUITABLE ASSURANCE COMPANY, LTD., AND OTHERS v. SAME.

(1937) 57 Ll.L.Rep. 254

KING'S BENCH DIVISION.

Before Mr. Justice Goddard and a City of London Special Jury.

Fire insurance-Fraudulent exaggeration of claim - Incendiarism - Non-disclosure -Fires at assured's premises in 1931 and in 1933-Payment by plaintiff insurers under policy in respect of 1931 fire-Refusal by insurers after investigation to make any payment in respect of 1933 fire-Alleged fraudulent exaggeration of claim- Death of assured-Claim by insurers against administrators of assured's estate to be recouped amount paid in respect of 1931 fire (on grounds that fire was deliberately caused by or with the privity of the assured and that claim was fraudulently exaggerated) and to be paid as damages for breach of contract the expenses incurred in investigating the circumstances surrounding the 1933 fire-Counterclaim by administrators for sum alleged to be due in respect of the 1933 fire-Onus of proof - Evidence of financial position of assured and of stock-in-trade -Issue of non-disclosure dropped during course of the trial-Questions for jury: "(1) Was the 1931 fire caused by a deliberate act of incendiarism to which the assured was privy? Failure to agree. (2) Was the claim made in respect of the 1931 fire fraudulent? Yes. (3) Was the claim made in respect of the 1933 fire fraudulent? Yes."-Effect of jury's findings - Expenses incurred in investigation of claim - Whether recoverable as damages for breach of an implied term of the contract that assured should make an honest and not a fraudulent claim.