ABSTRACT

In marine insurance the relevant issue is analysed under the 'sue and labour' expenses and the policies commonly include a clause to this effect. The assured then claimed from the insurers under the sue and labour clause in the policy. The argument was that the value of the claims for extra payment under the dredging contract, which the assured had waived or relinquished under the finalisation agreement, should be described as sue and labour expenses. The court emphasised that the expenses that can be recovered under the suing, labouring and travelling clause were expenses incurred to prevent impending loss. The owners of the Mars sued the Smyrna and her owners for the recovery of damages for the loss of the Mars but the Court dismissed the action and left each party to bear their own costs. In relation to the nature of the expenses the court was persuaded that the assured took extraordinary means to recover their containers.