Action Against Local Insurance Company in Respect of Loss Sustained at Harbin A fire insurance policy clause velating to the safe keeping of books, and alleged misvepresentation of stock values, were the principal points in a case which vame before his Honour Judge Grain at H. on Tuesday. Plain Nastasheffsky) (father and son) claimed from the Far Eastern Insurance Ca., Ld., the sum of Gold Y.40,827.76, the amount of an award by Mr. A. D. Blackbura under a, fire insurance policy issued by the defendant company, together with interest at the rate of 8 per cent, per annum from May 9, 1921, to date of payment.
In their defence, the company admitted the award, on an agreed arbitration confined to the amount of plaintiff's loss in merchandise, and with the provision that all conditions of the policy were to remain in force. The policy was subject- to a condition precedent, typewritten on the face of it, stipulating that plaintiff must keep his stock register, invoices ete, in premises other than those covered by the policy, and this plaintiffs had failed to do. The defence further alleged that, during the arbitration, plaintiff and his son falsely and fraudulently stated that the values of the goods specific ed in the stock list were not the sale price but represented the cost of production.
It appeared from the arbitrator's award that the policy was taken out' at Harbin in December, 1920, for Gold Y.50,000 "'on goods stored or to be stored in the factory and office of the insured." A fire occurred in March, 1921, and the company paid Gold Y.4,386 to plaintiff. In the following May another fire occurred, and the disputed question of compensation was referred to Mr. Blackburn for arbitration. As to the value of the stock, the arbitrator accepted figures obtained from the Harbin Chamber of Commerce, deducting 20 per cent., and awarded plaintiffs Gold. Y.35,214, in respect of goods stored in an iron store house, and Gold_ Y.5,613 in respect of goods stored in the factory and office.
Mr. P. W. Goldring appeared for plaintiffs and Mr. R. N. Macleod for defendants.
Text read from the printed page and cleaned; old type leaves the occasional error.