Soya GmbH Mainz Kommanditgesellschaft v. White (The Welsh City and the Corfu Island) - Court of Appeal (Waller, Donaldson and O’Connor L.JJ.) - 12 November 1981

Whether marine insurance contract covers loss due to inherent vice

The plaintiffs imported a cargo of soya beans from Indonesia between July and September 1973 in the vessels Welsh City and Corfu Island. The cargo was insured by the defendant underwriter under a separate policy covering the risks of “. . . heat, sweat, spontaneous combustion only”. When the beans arrived they were found to be in a heated and deteriorated condition. The defendant rejected the plaintiffs’ claim in relation to those shipments. At first instance Lloyd J. found in favour of the plaintiffs. He found as facts that the moisture content of the beans on shipment was such as to give rise to a risk of heating, and that the cause of the loss was the condition under which the beans were carried.