HEKTORIA, LTD. v. MINISTER OF WAR TRANSPORT.
(1946) 80 Ll.L.Rep. 354
SHIPPING CLAIMS TRIBUNAL.
Before Mr. Justice Willmer (President), Mr. H. C. Gutteridge, K.C., and Mr. G. R. Rudolf.
Charter-party - Requisitioned ship - Loss - Compensation - Claimants' whaling factory ship Hektoria requisitioned by Ministry of War Transport, letter of requisition providing:
It is desired that you will run the vessel on the conditions of the pro forma Charter-party T.99A (Tankers) which is enclosed. It is anticipated that there will be no difficulty in agreeing an appropriate rate of hire, but, in default of agreement, compensation payable in respect of the requisition will be determined under the Compensation (Defence) Act, 1939.
Incorporation in T.99A of provisions of T.773:
Provided that the ship is entered in and kept entered in and is covered and kept covered by a policy issued by one or more approved war risks associations, the charterer will pay, or make provision for the payment of, all premiums due in respect of the ship under any such policy. . . . Save as aforesaid the charterer shall be under no liability in respect of the insurance of the ship or any loss or damage by war risks.
Ship torpedoed and sunk during requisition - Payment in full of insured value made by war risks association - Claim by owners under Compensation (Defence) Act - Alleged right to recover balance of "value of vessel . . . immediately before occurrence of the damage which caused the loss" - Whether claimants entered into such agreement as precluded them from claiming compensation under Act - Onus of proof - Inference to be drawn from conduct of parties - Alleged implied acceptance by claimants of terms offered by Ministry - No final hiring agreement concluded, but ship kept insured by claimants with war risks association, premiums being paid by Ministry - Severability - Compensation (Defence) Act, 1939, Sects. 4 (1), 15.