The Providence Washington Ins. Co. v. Gerow

The Providence Washington Ins. Co. v. Gerow

The policy wording must be read in its commercial sense; evidence showed that the mercantile understanding of 'a loading port on the western coast of South America' included the guano islands and the insurer was aware that guano loading was contemplated, so loading at Lobos was not a deviation and the verdict for the insured stands.

Citation
(1890) 17 SCR 387
Parties
Appellant (defendant): The Providence Washington Insurance Company; Respondent (plaintiff): George W. Gerow
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
13 June 1890
Procedural Posture
Marine Insurance Appeal / Appeal to Supreme Court of Canada From Supreme Court of New Brunswick
Outcome
Appeal dismissed; judgment of the Supreme Court of New Brunswick affirmed
Legal Topics
Deviation, Construction of Policy, Commercial Usage, Loading Port, Guano Islands
Source Language
English
Insurance Marine Insurance Admiralty Law Commercial Law Deviation Construction of Policy Commercial Usage Loading Port +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 2 Authorities cited 7 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

The Providence Washington Insurance Company

Appellant (defendant)

George W. Gerow

Respondent (plaintiff)

Procedural Posture

Marine Insurance Appeal / Appeal to Supreme Court of Canada From Supreme Court of New Brunswick

Legal Issues

  1. 1 Whether loading at Lobos (a guano island 25–40 miles offshore) constituted a deviation from the insured voyage
  2. 2 Whether the phrase 'loading port on the western coast of South America' includes offshore guano islands
  3. 3 Whether trade usage and the commercial understanding of shippers/shipowners/underwriters governs the construction of the policy

Ratio Decidendi

The policy wording must be read in its commercial sense; evidence showed that the mercantile understanding of 'a loading port on the western coast of South America' included the guano islands and the insurer was aware that guano loading was contemplated, so loading at Lobos was not a deviation and the verdict for the insured stands.

Court Disposition

Appeal dismissed; judgment of the Supreme Court of New Brunswick affirmed

Orders

  • Appeal dismissed with costs
  • Judgment affirmed