ATTORNEY-GENERAL v. GLEN LINE, LTD., AND THE LIVERPOOL & LONDON WAR RISKS INSURANCE ASSOCIATION, LTD.

(1930) 37 Ll L Rep 55

HOUSE OF LORDS.

Before Viscount Dunedin, Lord Warrington of Clyffe, Lord Atkin, Lord Tomlin and Lord Macmillan.

Ship-Insurance-Reinsurance by Government -Detention by German authorities during period of war - Abandonment to underwriters - Ship restored to and sold by underwriters after signing of peace treaty-Compensation subsequently paid to owners by German authorities in satisfaction of award of Mixed Arbitral Tribunal -Right of Government as reinsurers- Nature of payment-Held, that sum paid was compensation in respect of damage or injury inflicted upon the shipowners' property, rights or interests by the application of "exceptional war measures;" that it was paid to satisfy a claim which arose once for all at the time of the loss and was personal to the shipowners; and that therefore the payment did not enure for the benefit of the underwriters or the Government-Treaty of Versailles, Art. 297 (e) and Annex-Marine Insurance Act, 1906, Sects. 63, 79.