AN INSURANCE CASE.

Ashburton Guardian, Volume VII, Issue 1695, 26 October 1887, Page 2

AN INSURANCE CASE.

Wellington, Oatober 25. At the Supreme Court to-day, the oast of the National Insurance Company v the Australian Mercantile Union Insarsnoe Company, which has oooupled the Oonrt sereral days, was oonciaded. The aotlon arose oat of the Ute ft c m the Panama street block on 27th February lait, when Messrs Johnson aud Oc.'i building wai partially destroyed. It was a olaim for £600, and inter ast at 8 per cent., proportionate amount of re-insurance by p aintiffs with defendant Company. Johnston and 00. befora the fir« were tDsared with plaintiff* for £1500 on the building, and plaintiffs had reinsured the greater part with three different Com. panics viz., £1000 with the Australian Mercan ' ile Union, £250 with the Northern/ aud £175 with the Phce iix. After the fire a atatement was arrived at between Johnston and 00. and the principal Inaarance Company holding risks on the bulldbg and stook, and •ojordingly plaintiffs aiaesed the amount of the original policy to Johnston and 00., and m dv» oourse olalmed m ritarn from the defendants the sum of £600 ti propot • tionata sum due to them on the re*ihißf> anoe aa effected between them asd plaintiffs on the original sum of £1000. j The defenoe was that the proportionate . olaim was paid by plaintiffs without the consent of, or doe notice being glf en to defendant ; also that fcht low sustained by Johnson and Co, was not snob, as to justify the settlement arrived at with the Iniuraaou Companies and that In any oase the reinsuring Companies were not bound by the settlement arrived at between the insured and the original Inaurande Company. Judgment reserved.