STANDARD MARINE INSURANCE COMPANY, LTD. v. WESTCHESTER FIRE INSURANCE COMPANY.

(1938) 60 Ll L Rep 202

UNITED STATES.CIRCUIT COURT OF APPEALSFOR THE SECOND CIRCUIT.

Before Circuit Judges Learned Hand, Augustus N. Hand and Chase.

War risk insurance - Recovery of losses from enemy-Award by United States-Germany Mixed Claims Commission - Right of British reinsurers to share in recovery - Plaintiffs (British underwriters) and defendants (American underwriters) mutually interested in same risks (as insurers, reinsurers or co-insurers) during Great War - Setting up of Commission, after signing of Treaty of Berlin between United States and Germany, to adjudicate upon claims for war losses by American nationals against Germany-Claim by defendants-Character of claims to be presented-Commission's decision that "no underwriters, other than corporations incorporated under the laws of the United States or any State thereof . . . and partnerships and/or individuals other than such as owe permanent allegiance to the United States, are to share in any manner whatsoever in the distribution of the awards involved in this settlement"-Award of actual out-of-pocket losses - Effect of Commission's decision - Whether intended to abrogate plaintiffs' derivative rights-Jurisdiction of Commission- Nature of award-Contention by plaintiffs that award should be regarded as salvage in diminution of losses sustained and that therefore they were entitled to share-Reparation received by British Government from Germany in respect of war losses to nationals, but no distribution made to plaintiffs.