AN IMPORTANT CASE.

Wanganui Chronicle, Volume XLIII, Issue 15000, 14 July 1898, Page 2

AN IMPORTANT CASE.

Interesting to Insurance Companies. Liability for Fires Caused by Earthquakes. (Per Press Association.) Wellington, July 13. An interesting case came before Judge Edwards in Banco to-day. The facts, as stated, were that on the morning of the iith December last the inmate'3 of the house of Mr H. J. Lewis, of Wanganui, were aroused by a severe shock of earthquake ; so frightened were they that they left the house and took shelter in an outbuilding. No further shock accuned; however, about half-an-hour after leaving the house a lire started in one of the rooms, and the place was burnt down. A claim was made on the Alliance Insurance Company for £550, amount of two policies. The'matter was submitted to an arbitrator, Mr D. Peat, who now sought the opinion of the Court as to whether the Company was exempt from liability by the terms of one of the conditions of the policies which provided that they should not he liable for fires caused by, through, or during the existence of an earthquake. Mr Young, for claimant, argued that the onus lay on the Company of showing that the earthquake was the cause of the fire. The facts found showed that it was neither by, nor during the existence of the shock, and it could not be said to be through the, shock, because the earthquake was not the approximate cause. The fire prob- 1 ably arose throug'i carelessness of the in- : mates, or some other cause. Mr Bell, on behalf of the Company, contended that but for the earthquake the fire would never havßhappeneu,and the construction of the clause was that if the earthquake might have been the cause then the onns was upon elaimantof showingthat the fire was attributable to some other cause. There appeared "to bo no authorities on the subject of earthquake fires, but illustrations were cited from accidents j arising from other causes, snch as explosions and hostilities, etc. His Honour reserved judgment. Mr Bell pointed out that the matter was one of the greatest importance to Insurance Companies, as an earthquake might absolutely ruin them. He added that the defending Company would pay the insurance to Mr Lewis in any event, and merely wanted a judgment in the case on a point of law for future guidance.