HOWARD FARROW, LTD. v. OCEAN ACCIDENT & GUARANTEE CORPORATION, LTD.

(1940) 67 Ll.L.Rep. 27

KING'S BENCH DIVISION.

Before Mr. Justice Macnaghten.

Insurance-Flood-Accidental damage to property-Claimant contractors engaged in construction of culvert in and over stream-Negligence of claimants' workmen in allowing planks to obstruct grating in stream, resulting in overflow and causing damage to properties of H. Co. and D.- Action brought by H. Co. and D.- settled on terms that claimants should pay damages-Right of claimants to be indemnified by respondent insurance company under policy covering "accidental damage to property happening in the course of the business" -Exception clause in policy providing that indemnity should not apply to or include "Liability in respect of injury or damage caused by or in connection with or arising from . . . flood"-Arbitration-Case stated- Claimants' contention that although admittedly the damage was due to flood, the flood was the result of the negligence of their workmen, and that accordingly they were entitled to indemnity.