IMPORTANT FINDING.

Hawera Star, Volume XLVIII, 18 October 1924, Page 7

IMPORTANT FINDING.

RAIN HELD TO BE PERIL OF THE SEA. Holding that rain water damage, when caused by the action of the wind in driving rain against cargo, constitutes one of the perils of the sea, the United States District Court at San Francisco has handed down a decision upon the merits of which marine underwriters are divided. The case was that of Christenson, Hanify and Weatherwax v., the Union Insurance Society of Canton. According to Shipping Register, libellants claimed that a rice cargo was shipped from San Francisco tp Santiago, Cuba, and while being unloaded and placed in open lighters was badly damaged by the action of the rain and waves. , The insurance company stood ready to determine by chemical analysis the extent of damage caused by salt water, and was willing to pay for same, but declined to" pay for rain water damage on the grounds that such damage did not constitute a peril of , the sea. The court held, however, that much of the damage to the rise was caused by the action of the wind in driving rain against the rice, and that wind i- s a sea peril, and that although the rain was the direct cause of loss the wind was the indirect cause. Marine men in discussing the case state that in many cases wind is not a peril of the sea, and for that reason the decision is not tenable, and cite that in the. early days of sailing ships insurance companies never allowed claims due to the blowing away of sails or of strains caused by the wind. On the other hand, the insurance company should charge an adequate rate to cover rain water damage caused by the use of open lighters.