8 Jul 1981
HONG KONG ISLANDS SHIPPING CO LTD v CASTLE INSURANCE CO LTD AND OTHERS
- Citation
- HONG KONG ISLANDS SHIPPING CO LTD v CASTLE INSURANCE CO LTD AND OTHERS
- Court
- Court of Appeal
- Case number
- CACV178/1980
The Court of Appeal held that as a general rule a cause of action for general average accrues at the time of the casualty or expenditure (subject to defeasance by non‑arrival) and that the York/Antwerp Rules do not, by themselves, postpone accrual; however, certain Letters of Guarantee signed by insurers created new primary obligations and, on true construction, made insurer liability conditional on production of a general average adjustment so that limitation for claims against those guarantors ran from the adjustment; the court had discretion to join the shipowner but would not allow joinde…