Insurers Must Cover Theft
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A N insurance company was liable tti 1—indemnity, the Court of Appeal decided on Tuesday, in a case in which a load was stolen by a driver who gave false information concerning his employers. John Rigby (Haulage), Ltd., Canning Place, Liverpool, appealed against the judgment of Mr. Justice Barry, in the Queen's Bench Division.
Mr. Justice Barry had dismissed the company's action against the Reliance Marine insurance Co., Ltd.. Rumford Street. Liverpool, for a declaration that the insurers were liable to indemnify them for £3,338 in. respect of the theft of 440 copper ingot bars.
The bars were collected at South Canada Dock, Liverpool, by a lorry driver who falsely said he was employed by Shenstone's Transport, Ltd., Birmingham. The bars were not taken to the Birmingham destination and were never traced.
Lord Justice Singleton said that the plaintiffs had only one lorry, and most of their business was done through sub-contractors, It frequently happened that a driver.employed by one of their sub-contractors, who had taken a load to Liverpool, called at their office and asked whether they had a load for his return journey.
In April, 1955, a driver called, stating that he was employed by Shenstone's Transport, Ltd., and he was given a collection note for the goods. Counsel for the insurance company had submitted that the driver was a thief. and that the plaintiffs could not be said to have received the goods or held them in trust.
His lordship was satisfied that there was a contract between the plaintiffs and David Rees and Co., Liverpool, shipping agents, to convey the goods, and that they were entrusted to plaintiffs.
Lords Justices Jenkins and Hodson agreed. Judgment was entered for John Rigby (Haulage). Ltd., for £3,338. Leave to appeal to the House of Lords was refused.