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CHAPTER 7 The rights of an insurer to seek contribution and enforcement

Double Insurance and Contribution

Page 147 CHAPTER 7 The rights of an insurer to seek contribution and enforcement 7.1 Contribution: principles of equity The issue of contribution between insures causes difficulty. The court adopts basic principles of equity, which is one of reason, justice and fairness. 1 The court should and will take into consideration all matters which go towards ensuring a just result. 2 This approach was adopted by Lord Mansfield in Godin v London Assurance Co , 3 who stated that the rights of contribution was found in equity and not in contract. He stated: 4 “If the assured is to receive but one satisfaction, natural justice says that the several insurers shall all of them contribute pro rata, to satisfy that loss against which they have all assured.”

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