CARGOES LOST

Wairarapa Times-Age, 27 November 1940, Page 9

CARGOES LOST

AS RESULT OF GERMAN ACTION IMPORTANT LEGAL QUESTION IN BRITAIN. CASE GOING TO HOUSE OF LORDS. (By Telegraph—Press Association—Copyright * LONDON, November 25. Lloyds underwriters attach such importance to an action regarding German ships whose cargoes were lost as the result of German action that they indicated their intention to pay the cost of going to the House of Lords even before the Court of Appeal issued a judgment against them today. Millions sterling are reported to be involved. The King's • Bench earlier upheld the underwriters' contention that the claims concerning cargoes by three companies to which they were consigned were not allowable because the loss was not due to causes covered by the policies. The Court of Appeal reversed this ruling on the ground that the frustration clause afforded the underwriters no defence. One ship, the Wangoni, took refuge at Vigo two days before the outbreak of war and sailed for Hamburg last March. The others, the Halle and Minden were scuttled in order to escape capture. The appellants contended that the German Government was guilty of converting the goods to its own use with the result that the owners suffered loss on voyage in addition to loss on goods.