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Discussion on the principle of indemnity in marine insurance contracts

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The Principle of Indemnity in Marine Insurance Contracts

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References

  1. Wilburn Boat Co v Fireman’s Fund Insurance Co, 348 US 310, 75 S Ct 368, 99 LEd 337 (1955).

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  2. Wilburn Boat Co v Fireman’s Fund Insurance Co, 348 US 310, 75 SCt 368, 99 LEd 337 (1955).

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  4. Wilburn Boat Co v Fireman’s Fund Insurance Co, 348 US 310, 75 S Ct 368, 99 LEd 337 (1955).

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  7. Constitution Insurance Co of Canada v Kosmopoulos (1987) 34 DLR (4th) 208.

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  19. Even in cases where the objective is to produce no more than a codification of principle, there can exist substantial disagreement on points of fine detail leading to even more delay in the final passing of the codifying statute. In the case, however, of the Marine Insurance Act 1906, its history has shown that if the parties involved were let those disagreements overtake and drug even more in time length the codification process that would have been highly unbeneficial to their interests Already, the Bill-first introduced in 1894-only became the Marine Insurance Act in 1906, there was too much negotiation and amendment in the intervening period involved and in addition a range of further amendments were made in the final Parliamentary stages of the Bill in 1906. Doubtless, there would have been a temptation for those involved to sneak through the odd change or two in the law and to give effect to what was perceived to be the law on points which had not been tested before the courts. These temptations were, however, resisted by Chalmers and the 1906 Act came to snapshot of the law as it was back then, with the unresolved issues having remained unresolved and with no effected changes to the law, at least intentional ones (Croly C, Merkin R (2001) Doubts About Insurance Codes, JBL, Nov, pp 587–604).

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  20. Croly C, Merkin R (2001) Doubts About Insurance Codes, JBL, Nov, pp 587–604.

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  21. Croly C, Merkin R (2001) Doubts About Insurance Codes, JBL, Nov, pp 587–604.

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  22. The proper approach to the interpretation of a codifying act was set out in Lord Herschell’s often cited speech in Bank of England v Vagliano Brothers [1891] AC 107, at pp 144–145 (Bills of Exchange Act 1882) where he stated: “I think the proper course in the first instance is to examine the language of the statute and to ask what is its natural meaning, uninfluenced by any considerations derived from the previous state of the law, and not to start with inquiring how the law previously stood, and then, assuming that it was probably intended to leave it unaltered, to see if the words of the enactment will bear an interpretation in conformity with this view. If a statute, intended to embody in a code a particular branch of law, is to be treated in this fashion, it appears to me that its utility will be almost entirely destroyed, and the very object with which it was enacted will be frustrated. The purpose of such a statute surely was that on any point specifically dealt with by it, the law should be ascertained by interpreting the language used instead of as before, by roaming over a vast number of authorities in order to discover what the law was, extracting it by a minute critical examination of the prior decisions.” Therefore, only in the cases of ambiguity, construction of language with a technical meaning or statutory lacuna is it legitimate to resort to the previous case law. If this is right, then the Marine Insurance Act 1906 has proved to be peculiarly ambiguous and gap-ridden. This point is taken up in detail below, but it may be said in general terms that there are very few sections of the Marine Insurance Act 1906 which have been taken at face value by the courts. One area in which the Vagliano Brothers approach may provide assistance is to prevent a code from being rendered out of date almost as soon as it is enacted, a situation which may be posed in the event of a post-code judicial decision arising from facts taking place prior to the enactment of the code (Croly C, Merkin R (2001) Doubts About Insurance Codes, JBL, Nov, pp 587–604).

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  24. Such as Professor Cheshire, who spoke of “the paralysing hand of the Parliamentary draftsman”; and judges such as the one time Master of the Rolls, Lord Evershed, who once described the interpretation of statutes as “intellectually exacting but spiritually sterilising” (Quoted by Beatson (1997) CLJ 291, 299). That was said well back in the twentieth century, but such attitudes persist. As recently as 1997, Dame Mary Arden, herself an advocate of some degree of codification, wrote of the “deep-seated fears of common lawyers about codification” (1997) CLJ 516, 531) [Clarke M (2001) Doubts from the Dark Side-The Case Against Codes JBL Nov pp 605–615].

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  30. Due to the fact that in some legislations exist binding rules on contractual relationships, and in order to ensure the ability to use the conditions as well as uniformity in their application, there might also be need for additional legislative provisions. The form of such legislative provisions could either be that of a legally binding international convention, or that of the creation of model legislative provisions to be enacted by each country as part of its domestic legislation [United Nations (1978) UNCTAD Report: Legal and Documentary Aspects of the Marine Insurance Contract, UN, NY pp 19–38].

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(2007). Discussion on the principle of indemnity in marine insurance contracts. In: The Principle of Indemnity in Marine Insurance Contracts. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-49074-6_6

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