AN INSURANCE CASE.

Star (Christchurch), Issue 6068, 26 October 1887, Page 3

AN INSURANCE CASE.

[Pail PItESS ASSOCIATION.] WELLINGTON, Oct. 25. At the Supreme Court to-day tho case of the National Insurance Company v. The Australian Mercantile Union Insurance Company, which has occupied the Court for several days, was concluded. The action arose out of the late fire in the Panama street block, on Feb. 27 last, when Messrs Johnston and Co.'s building. was partially destroyed, and was a claim for J6600 and interest at 8 per cent, the proportionate amount of the re-insurance by the plaintiff with the defendant Company. Johnston aud Co., before the fire, were j insured with the plaintiff for .£ISOO on the ! building, and the plaintiffs had re-insured ! the greater part with three different com- j panics, viz. :— ,£IOOO with the Australian ' Mercantile Union, _32 00 with the Northern, i and -C 176 with the Phtenix. After the fire a statement was arrived at between JohnBton and Co. and the principal, Insurance Company holding the risks on the building and stock, and accordingly the plaintiffs assessed the amount of the original policy to Johnston and Co., and in due course claimed in return from the defendants the sum of .£600., as the proportionate sum due to them on re-insurance, as effected between them and the plaintiffs on the original sum of £1000. The defence was that .he proportionate claim was paid by the plaintiffs without the consent of, or due notice being given to the defendants ; also, that the loss sustained by Johnston and Co. was not such as to justify the settlement arrived at with the Insurance Companies, aud that in any case the reinsuring companies were not bound by the settlement arrived at between the insured and the original Insurance Company. Judgment was reserved.