Borthwick v. British General Assurance Co., Ltd. Demetriades v. Northern Assurance Co., Ltd. Cambitsis v. Norwich Union Fire Insurance Society, Ltd [1923] ScotLR 133 (21 December 1923)

Borthwick v. British General Assurance Co., Ltd. Demetriades v. Northern Assurance Co., Ltd. Cambitsis v. Norwich Union Fire Insurance Society, Ltd [1923] ScotLR 133 (21 December 1923)

The insurance policies were voidable and voided due to the pursuers' failure to disclose the Greek interest and management of the vessel, which were material facts affecting the risk and premium. The representation that the vessel was British owned was untrue and constituted a material misrepresentation. The pursuers failed to prove loss by a peril insured against, as the evidence established scuttling but left in doubt their privity. Cambitsis had no insurable interest as his claim was only for commission, not goods.

Citation
[1923] ScotLR 133
Parties
Pursuer: Robert Forrester Borthwick; Defender: British General Assurance Company, Limited; Pursuer: H. Demetriades & Company (Hercules Demetriades); Defender: Northern Assurance Company, Limited; Pursuer: Nicolas Cambitsis; Defender: Norwich Union Fire Insurance Society, Limited
Jurisdiction
Scotland
Judgment Date
21 December 1923
Procedural Posture
Civil (insurance Claim) / Appeal (reclaiming Notes) From Lord Ordinary's Judgment
Outcome
Claims dismissed; decree of absolvitor for defenders affirmed.
Legal Topics
Marine Insurance, Misrepresentation, Non Disclosure, Insurable Interest, Scuttling, Material Facts, Fraud, Burden of Proof
Insurance Law Maritime Law Marine Insurance Misrepresentation Non Disclosure Insurable Interest Scuttling Material Facts +2 more

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Parties

Robert Forrester Borthwick

Pursuer

British General Assurance Company, Limited

Defender

H. Demetriades & Company (Hercules Demetriades)

Pursuer

Northern Assurance Company, Limited

Defender

Nicolas Cambitsis

Pursuer

Norwich Union Fire Insurance Society, Limited

Defender

Procedural Posture

Civil (insurance Claim) / Appeal (reclaiming Notes) From Lord Ordinary's Judgment

Legal Issues

  1. 1 Whether the insurance policies are voidable for non-disclosure of material facts or misrepresentation
  2. 2 Whether the pursuers were privy to the scuttling of the vessel
  3. 3 Whether the pursuers had an insurable interest under the policies

Ratio Decidendi

The insurance policies were voidable and voided due to the pursuers' failure to disclose the Greek interest and management of the vessel, which were material facts affecting the risk and premium. The representation that the vessel was British owned was untrue and constituted a material misrepresentation. The pursuers failed to prove loss by a peril insured against, as the evidence established scuttling but left in doubt their privity. Cambitsis had no insurable interest as his claim was only for commission, not goods.

Court Disposition

Claims dismissed; decree of absolvitor for defenders affirmed.

Orders

  • Defenders assoilzied (absolved) from all three actions.
  • Policies declared voidable and voided for non-disclosure and misrepresentation.