STANDARD MARINE INSURANCE COMPANY, LTD. v. WESTCHESTER FIRE INSURANCE COMPANY.

(1938) 60 Ll.L.Rep. 202

UNITED STATES.CIRCUIT COURT OF APPEALSFOR THE SECOND CIRCUIT.

Before Circuit Judges Learned Hand, Augustus N. Hand and Chase.

War risk insurance - Recovery of losses from enemy-Award by United States-Germany Mixed Claims Commission - Right of British reinsurers to share in recovery - Plaintiffs (British underwriters) and defendants (American underwriters) mutually interested in same risks (as insurers, reinsurers or co-insurers) during Great War - Setting up of Commission, after signing of Treaty of Berlin between United States and Germany, to adjudicate upon claims for war losses by American nationals against Germany-Claim by defendants-Character of claims to be presented-Commission's decision that "no underwriters, other than corporations incorporated under the laws of the United States or any State thereof . . . and partnerships and/or individuals other than such as owe permanent allegiance to the United States, are to share in any manner whatsoever in the distribution of the awards involved in this settlement"-Award of actual out-of-pocket losses - Effect of Commission's decision - Whether intended to abrogate plaintiffs' derivative rights-Jurisdiction of Commission- Nature of award-Contention by plaintiffs that award should be regarded as salvage in diminution of losses sustained and that therefore they were entitled to share-Reparation received by British Government from Germany in respect of war losses to nationals, but no distribution made to plaintiffs.