The Ship Perene v. Maid of Scotland / The Ship Perene v. R.P. & W.F. Starr, Ltd.

The Ship Perene v. Maid of Scotland / The Ship Perene v. R.P. & W.F. Starr, Ltd.

The court held that the unexpired portion of a time‑policy marine insurance premium is not a recoverable element of damages against the party causing the loss; accordingly the trial judgment was varied by deducting the unexpired premium from the schooner's award, while the cargo award (including its insurance...

Source-derived case information.

Citation
[1925] SCR 1
Parties
Defendant/appellant: The Ship Perene; Plaintiffs/respondents: Owners of the Maid of Scotland; Plaintiff/respondent (cargo Owner): R. P. & W. F. Starr, Limited
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
30 December 1924
Procedural Posture
Admiralty Collision (action for Damages) / On Appeal to the Supreme Court of Canada From the New Brunswick Division of the Exchequer Court (admiralty)
Outcome
Appeal dismissed in part and allowed in part: liability findings affirmed; schooner award reduced by disallowing unexpired insurance premium; cargo award affirmed.
Legal Topics
Measure of Damages, Insurance Premium Apportionment, Collision at Sea, Recoverability of Insurance Costs, Interest on Damages
Source Language
english
Torts Maritime/admiralty Insurance Law Civil Damages Measure of Damages Insurance Premium Apportionment Collision at Sea Recoverability of Insurance Costs +1 more

Source-derived case record

Summary, issues, holding and outcome

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Parties

The Ship Perene

Defendant/appellant

Owners of the Maid of Scotland

Plaintiffs/respondents

R. P. & W. F. Starr, Limited

Plaintiff/respondent (cargo Owner)

Procedural Posture

Admiralty Collision (action for Damages) / On Appeal to the Supreme Court of Canada From the New Brunswick Division of the Exchequer Court (admiralty)

Legal Issues

  1. 1 Whether the owner of a ship can recover the unexpired portion of a marine time‑policy premium as damages after the ship is lost by an insured peril caused by another
  2. 2 Whether the value of a vessel for assessment should reflect existing insurance
  3. 3 Whether marine insurance premium paid for cargo forms part of recoverable cost/value of goods

Ratio Decidendi

The court held that the unexpired portion of a time‑policy marine insurance premium is not a recoverable element of damages against the party causing the loss; accordingly the trial judgment was varied by deducting the unexpired premium from the schooner's award, while the cargo award (including its insurance premium as part of cost/value) was affirmed.

Court Disposition

Appeal dismissed in part and allowed in part: liability findings affirmed; schooner award reduced by disallowing unexpired insurance premium; cargo award affirmed.

Orders

  • Reduce schooner owners' award by $1,634 (disallowing unexpired insurance premium)
  • Affirm cargo owners' award of $10,640.78 with interest from February 1