COURT OF APPEAL

Dominion, Volume 7, Issue 2134, 28 April 1914, Page 9

COURT OF APPEAL

STRANDED CARLA'3 COAL CARGO.

ITS SALE & AFTER, The Court of Appeal yesterday was occupied iu hearing argument on an appeal from a judgment of His Honour the Chief Justice (Sir Robert Stout). The appellants were A. Hatrick and Co., Ltd., and the respondents were Redpath and Son, and the Victoria Insurance Coy., Ltd. {plaintiffs in the Supreme Court). The action arose out of the stranding of _ the harquentine Carla near Wanganui, in September, 1011. The Carla-carried a cargo of coal, valued at £-363 lis. for Hcdpath and Sou.

Original Action. In the Supreme Court plaintiffs alleged that Ha trick and Co. had been instructed by Redpath and Son, whose agents they were said to be, to arrango for tho salving of the cargo of coal, and Hatrick and Co. undertook Ito adviso Redpath and Son of the courso .which the owners of tho vessel intended to pursue It was further alleged that Hatrick and Co., in breach of duty as agent, and without consulting Redpath and Co., caused the Carla and her cargo to bo sold. Hatrick and Co.; it was said, represented to the Victoria Insurance Company that tho coal would have to be jettisoned, and that the vessel was a. total loss, and thereby induced the Insurance Company to consent to tho sale of the cargo. At tho sale Hatrick and Co. bought tho hull and cargo for £290, but, afterwards, tho Carla was got off the beach by Hatrick and, Co. without difficulty and without jettisoning the cargo, and the' coal Was subsequently sold by them for £5M ss. Tins' was dono without tho authority of Redpath and Co. On the other hand Hatrick and Co, denied that they had been agents for Redpath and Co., and denied the allegations as to representations made to the Victoria Insurance Company, fhey admitted having prepared conditions of salo for tho master of the Carla, under bis direction. They did not,, however, sell tho cargo, either in the capacity of principal or agent. The outcome of the Supreme Court proceedings was that tho Chief Justice awarded Redpath and Co, £445 15s. 6d. damages for conversion of the cargo. At the hearing of th& appeal- yesterday tho Court consisted of Their Honours Sir. Justice Denn-istoUj. Mr. Justice Edwards, Mr. Justice Sim, and Mr. Justice Hosking. Sir. C. B. Morieon, K.C., with him Sin Cooke, ap* peared for the appellants, Hatrick and Co. The respondents wqro represented by Slessrs. W. C. Maegregof and W. J. Treadwell, of Wanganur.

Nature of Appeal. Mr. Morison, in opening the case, put totho Court the following submissions in support of the appeal :-"(l) The Judge in the Court below, although rinding conversion and fisiiif; tho cargo as worth £54:8 in Wanganuj, hold (and properly so) that tie proper portion of tho cost of salving must be deducted from the value of the cargo. His Honour held, however, that the .cost of salvage should be apportioned between tho ship and the cargo in the proportion in which they were respectively insured instead of holding (as Mr. Morison submitted he should have hold) that tho cost of salvage ought to bo apportioned according to the rcktiyo value? of the ship and ear-go. f2) Tho payment by the underwriters (as for a total loss) of tho total amount <if .tho Insurance policy prevented Redpath and Co-.'s having any voice in tho cargo; it became tho property of tho underwriters. (3) Hatriek and Co. wore not purchasers of tho cargo at all, and if there was any conversion it was a conversion by a; syndicate, and not by Hatrick and Co.' (4> Hatriek and Co. were agents for the ship, which was quite a different thing to being agents for Rcdpath and Co. Mr. Morison continued his argument throughout the day and at 4.30 the case was adjourned until 10.30 this morning.'