GENERAL AVERAGE DEPOSITS.

Lyttelton Times, Volume LIII, Issue 5951, 23 March 1880, Page 5

GENERAL AVERAGE DEPOSITS.

Bearing ip mind the custom npw creeping in in New Zealand of shipowners demanding heayy deposits before delivering goods after a vessel has been in difficulties, the following information will ho found to be important:— An action was recontlyhrought by the Bank of Now South Wales, as consignees of wool and other produce by the. Abergeldie, lagainst the London and St Kathariho’s Dock Company and Messrs Houlder Brothers, the agents of the vessel, to obtain a. decision on the much discussed question of the right of owners and., agents of vessels in cases of general average to demand , a deposit to be made in their own hands before the delivery of the goods, and.alsp to test the validity of a stop placed,by Messrs Houlder Brothers oh the goods in the Dock Company’s hands in respect of the general average. The Bank had offered the usual, average bond, but the ship agents had insisted upon a deposit in their hands. In , these circumstances the Bank had brought , the action, and contended that they were entitled to immediate delivery of the goods on paying into ,(3ourj; the, amount, demanded by the shipowner,' and that unless the latter could ultimately-show a claim for, general average for the full amount so paid into Court, he would be liable to pay the full costs of the notion. The Bank contended that the shipowner could not require payment by way of deposit, or that the money should be placed in his hands.

The Bank also complained that the stop which had been placed On the goods in the present instance by notice to the Dock Company was altogether illegal, Os it did not comply with the Act of Parliament, and did not contain such particulars as would enable the consignees to obtain their goods by making a deposit with the Dock Company. The case was heard in Chambers, and an order was made that the goods should bo delivered to the Bank on the payment into Court offered, and liberty was given to the Bank to prosecute the action against the shipowner, the amount remaining in Court in the meantime. The right of the shipowner to claim a deposit in Ms own hands, in any: case :whs, therefore, practically negatived.- The questions of the legality of the means taken to stop the goods and the amount of the general average remain for decision at a later stage of the action. ■ < . ; [Messrs Houlders have since determined hot to contest the action further. The amount paid into Court will, therefore, be returned to the banks, and the cost of the action will be borne by the shipowner.]