LOST CARGOES

Gisborne Herald, Volume LXVII, Issue 20414, 26 November 1940, Page 8

LOST CARGOES

GERMAN SCUTTLINGS LLOYD’S LOSE APPEAL MILLIONS INVOLVED CASE MAY GO TO LORDS (Elec. Tel. Copyright —United Press Assn.) (Reed. Nov. 26, 2.30 p.m.) LONDON, Nov. 25. Lloyd's underwriters attach such importance to the action regarding German ships whose cargoes have bepn lost as a result of German action that they indicated.their intention to pay . the cost of going to the House of Lords even before the Court of Appeal issued judgment aga'inst them today. Millions sterling are reported to be-involved. The King's Bench earlier upheld the underwriters’ contention that claims concerning the cat goes by three companies to v.’hich they were consigned were not allowable because the loss was not due to causes covered by the policies. The Court of Appeal reversed this ruling on the ground that the frustration clause afforded the underwriters no defence. One ship, the Wangoni; which took refuge at Vigo two days before the outbreak of war. sailed for Hamburg last March. The others, Halle and Minden, were scuttled in order to escape capture. The appellants contended that the German Government was guilty of converting the goods to its own use as a result of which the owners suffered loss on the voyage in addition to loss of the gcods. . . .