LOSS OF THE DUCO

Taranaki Daily News, Volume LII, Issue 387, 12 May 1910, Page 5

LOSS OF THE DUCO

THE QUESTION OF INSURANCES. SUPREME COURT ACTION. By Telegraph—Press Association. Wellington, Last Night. In the Supreme Court to-day, beforo his Honor Mr. Justice Chapman and a special juiy, an action arising out of the loss of the steamer Duco was heard. The Wellington Harbor Ferries, Ltd., were plaintiffs and the Corporation bf the Royal Exchange, Assurance Company were defendants. The claim was for £SOO on a policy of insurance on the steamer. The decision in this case will affect a number of insurance claims.

Mr. C. P. Skerrett, KG, with him Mr. F. 6. Dalziell, appeared for plaintiffs, and Mr. J. H. Hosking, KG (of Dunedin), with him Mr. A. A. S. Menteatih and Mr. W. H. B. Bell, for defendants. Plaintiffs, in their statement of claim, set forth—(l) Plaintiffs were the owners of the ship Duco at the time of its loss; (2) on the 27th July, 1909, at Wellington, the defendants, in consideration of £25 paid, executed a policy of insurance upon the said ship whereby the defendants promised to pay to plaintiffs three months after adjustment of loss all loss and damage accruing to the plaintiffs by reason of the destruction or iniury of the said l ship while trading from Wellington or other safe ports in 'New Zealand to Chatham Islands and back during the period from 27th July. 1909, at noon to 27th July, 1910, at noon, whether by the perils of the sea or other causes therein mentioned, not exceeding £500; (3) that the said ship, while proceeding on the voyage from Wellington to Chatham Islands, was, on or about the 7th September, 1909, totally lost by the perils of the sea; (4) plaintiffs' loss thereby was £4000; (5) plaintiffs duly performed all the conditions of the said ■policy on tjieir part; (<i) plaintiffs have demanded payment of the said sum of £SOO, but the defendant* have repudiated all liability under the said policy, and have refused to pay the sum of £SOO or any part thereof. Wherefore plaintiffs claim (a) the sum of £SOO, (b) interest at 8 per cent, per annum on £SOO from 7th September, 1909, to the date of judgment, (c) costs of this action, (d) such further or other relief as to the Court seems fit.

Defendants submitted the following statement of defence:—(l) They admit all the allegations contained in paragraphs 1, 2, 3, 4, 5, and 6 of the statement of claim, save and except (it) that it appears by the policy of insurance stated in the statement pi claim that the insurance thereby effected was against total loss only, and save an except (b) that the plaintiffs did not duly perform the conditions of the said policy as to seaworthiness; (2) plaintiffs did not perform the conditions of the said policy as to seaworthiness, in that before and at the time of the departure of the ship Duc-o from Wellington on the voyage on which she was lost, and at the time of her loss was not seaworthy, and in particular by reason of the matters following: (a) Upon the deck of the said ship the,plaintiffs loaded a large quantity of bags of coal and aflso concrete blocks and timber, an additional boat, and a large tank containing water; (b) the said coal and the said other things so loaded on deck were not lashed' to prevent their shifting, and the effect of the matters averred in subparagraphs (a) and (b) of this paragraph was to render the said ship unstable, and therefore unseaworthy, and also to interfere with the steering gear, and thereby to render her unseaworthy, and also to prevent the escape through washports of sea water, and thereby to render the said ship unseaworthy; (c) the said ship was overloaded by the plaintiffs with a cargo of coal and other material exceeding her safe capacity, and was thereby rendered so deep in the water as that she was rendered unseaworthy. Evidence was not concluded when the Court rose for the dav.