58 Anlage G 



Some of the underwriters here say that an unclerwriter on war risks in 

 England is only obliged to settle a total loss if the interest insured is finally 

 condemned in a prize court. 



Arnould answers as below: 



It 'is now settled law in this country that as between the underwriters 

 and the assured the vessel insured, if captured, is „Prima facie" to be 

 deemed a ,,loss" within the policy notwithstanding that she be never 

 condemned or even taken into port and whether the capture be legal or 

 illegal or effected under mistake, the underwriters are equally liable. 

 Capture is prima facie constructive total loss and gives the right to abandon 

 to the underwriters on receipt of the news of the capture. If accepted 

 — a total loss; if not accepted either to enforce by an action or to abide 

 the issue of events and claim ultimately as for an average loss. Capture 

 is the forcible taking of a ship etc. in time of war, with a view to 

 appropriating it as prize. 



Question B. 



The goods being captured and by some reason, unknown to us, no 

 abandonment has been tendered, or after tender and declinement no action 

 has been brought. After a long delay the price court has finally released 

 the goods. Are the insurers liable for: 



1. Loss of interest on the capital invested? 



2. Loss of market in consequence of delay ed delivery? 



3. Excess freight or time chartered freight during detention? 



4. If the goods should be discharged: 



The risk of such discharge and storage? 

 Any charges arising therefrom? 



5. The cost of defending the action in a prize court? 



The Corporation of the Royal Exchange Assurance. 



19 ,b December 1904. 

 I will now proceed to answer the questions submitted. 



Questi on A. 



The paragraph commencing with „We believe" and ending with „for 

 a partial loss" is in my opinion good law and in agreement with its 

 accompagning citation from Arnould. But the last sentence of this 

 commencing with ,,Some of our underwriters" and ending with ,,in a prize 

 court" propounds a doctrine, which, so far as I am aware, is not supported 

 by authority. 



Question B. 



The liability of an English policy is determined by the rigid application 

 of the rule „causa proxima non remota spectetur". That is to say, that 

 only those consequences which are the immediate result of a peril insured 

 against can be admitted. 



