Castle Insurance Co. Ltd. v. Hong Kong Islands Shipping Co. Ltd. (The Potoi Chau) - Privy Council (Lord Diplock, Lord Roskill, Lord Brandon, Lord Brightman & Sir John Megaw) - 25 July 1983

When cause of action accrues under Lloyd’s average bond

The issues for consideration by the Privy Council were the dates of the commencement of the cause of action in general average cases. The bills of lading provided that general average was to be adjusted and settled according to the York-Antwerp Rules 1950. The general average acts took place in November 1972. The cargo was subsequently released to the consignees against the usual Lloyd’s form of average bonds. The average adjustment statement was published on 31 August 1977.