7.1 Introduction

7.1.1 Generally

A general average loss for which a general average contribution may be claimed was said by Brett MR in Burton & Co v English & Co ¹ to arise “by reason of a voluntary sacrifice by the cargo owner for the benefit of the ship and cargo”. Or, as Lord Hamblen in the UK Supreme Court stated it in Alize 1954 v Allianz Elementar Versicherungs AG, ² general average “is a principle of maritime law whereby sacrifice or expenditure, in time of danger, for the sake of all the property interests to the common maritime adventure, is to be replenished by a general contribution by all property interests whose property has been thereby brought to safety”. A clear example given by Brett MR is a jettison of cargo where loss overboard of some item or items of cargo enables the vessel and remaining cargoes to be saved. ³ In Rowe v Ingenious Media Holdings Plc ⁴ Nugee J quoted Sir John Donaldson MR in Davies v Eli Lilly & Co ⁵ that general average is “based…clearly upon the Rhodian Law, the Rolls of Oleron and the [general] maritime law”. Lord Kenyon CJ in 1800 in Jackson v Charnock ⁶ said that the meaning of a general average loss “has for a long time been well understood in the commercial world”: he then went on to say, “If, in the hour of danger, masts are cut away, or goods thrown overboard, those who are benefited by the preservation of the ship, are to contribute to the general loss thereby sustained, in proportion to their respective interests”.