Integrated Container Service v. British Trader Insurance Co. - Court of Appeal (Eveleigh, Griffiths & Dillon L.JJ.) - 17 November 1983

Marine insurance - Sue and labour clause

The plaintiffs were in the business of leasing freight containers, a number of which were leased to Oyama Shipping Ltd. in 1972. In 1975 Oyama went bankrupt leaving the containers scattered over the Far East. The plaintiffs took steps to recover their containers, incurring travel, legal and storage costs. They spent $133,943. The plaintiffs claimed against the defendants $53,777 by virtue of a sue and labour clause contained in an All Risks policy to which the defendants subscribed in the proportion of 41%. Neill J. held, on a preliminary issue, that the plaintiffs were entitled to recover their sue and labour costs. (See [1981] 2 Lloyd’s Rep. 460.) The case was then sent for trial by an Official Referee who gave judgment for the plaintiffs. The defendants appealed to the Court of Appeal.