a new ship on her first voyage; but, the meaning of that expression was not explained. In fact, it is impossible to give an authoritative definition of the extent of a first voyage; as the Courts while sanctioning the exception, have held that it must be explained by mercantile usage. In the first case which arose, where a vessel was insured "from Bristol to New York, during her stay there and back to the port of discharge," and it appeared that the charter-party stipulated that the vessel, after completing her outward passage, should return to the United Kingdom "and so end her intended voyage," it was held that the outward and homeward passage together constituted one voyage; and, as that was the vessel's first voyage, no deduction was made from the cost of the repairs rendered necessary by injuries sustained upon the homeward passage (g). In another case, a ship, built at Sunderland, was shortly afterwards chartered to convey convicts from London to Van Dieman's Land. She completed her outward voyage, and being unable to procure a homeward cargo from Van Dieman's Land, proceeded in ballast to Madras, where she obtained a cargo for London. On the homeward passage, the ship sustained injury, which formed the subject of a claim under a policy effected to cover that passage, and the same question arose as in the previous case. It appeared by the ship's articles that she was originally destined for the course pursued, which was moreover the usual one under the circumstances. In this case also, the jury found that the deduction of one-third was not applicable (h). If any general principle can be deduced from the above decisions, it appears to be that a ship's first voyage, for insurance purposes,

the underwriters' liability remains unaltered. From this consideration it is evident that deductions for improvement represent the immediate advantage derived by the owner from the repair, which can only be computed at the time and place of repair. On the whole, it appears more agreeable to sound principle that the deduction for improvement should be made from the actual cost of the repairs, wherever

effected, than from the estimated cost at the home port. Irrespective of principle, the practical difficulties involved in the adoption of any other course would be very great, so that no alteration in practice on this point appears desirable.

(g) Fenwick v. Robinson, 3 C. & P. 323.

(h) Pirie v. Steele, 2 M. & Rob. 49; 8 C. & P. 200.

consists in her first complete trading adventure out and home, inclusive of the outward passage, the homeward passage, and also an intermediate passage, provided that the latter, where made, is undertaken in pursuance of an original intention to return to a home port. It is not, however, to be presumed that the expression "first voyage" will extend to cover intermediate trading which cannot be proved, either by an intention formed before the ship originally sailed, or by custom, to form part of a definite course out and home (i).

A ship's first voyage does not begin until she has reached that point where her first trading adventure commences, and will, therefore, not include her transit from the place of building to a loading port (k). Accordingly, in the case of a vessel built, for example, at Quebec, and despatched thence for sale to Liverpool, with a cargo of timber, her first voyage will not commence until she leaves Liverpool, or other port of departure, to enter upon her trading (1).

After the completion of the first voyage, the deductions allowed by usage are made irrespective of the age of the materials repaired or replaced. Thus, a vessel had, just before sailing on the voyage insured, which was not her first voyage, been completely repaired. In the course of the voyage she sustained injuries, chiefly in the parts previously made good, which were again repaired on her return. It was contended that the usual deductions ought not to be made, as the second repairs effected no improvement upon the first; but the exception was not

allowed, as it was considered that the rule of deducting onethird was the constant usage, according to which the parties must be taken to contract, and was framed with a view to avoid the difficulty of calculating minutely the actual benefit derived by the owner from the repairs in every case (m). On this point there is a difference in practice between the adjustment of repairs in general and particular average, respectively; for, in the latter, as we have seen (n), it is usual to allow in full the cost of replacing ship's materials which are perfectly new when sacrificed, though the vessel may not be on her first voyage. In justification of this divergency, it is to be observed that, in relation to particular average, the custom of deducting “thirds' is a usage of trade, which must be applied unconditionally, as it forms an implied term of the contract between the assured and the underwriters; but that, in relation to general average, it is a practical rule, binding within its legitimate scope, but open to any recognized exceptions, made to adapt the rule to peculiar circumstances under which a rigid application would operate unjustly (0).

In view of the great diversity in the length of a ship's first voyage, which may vary from a few days in the case of a coaster to a period of considerably over twelve months in the case of vessels in the foreign trade, the practice of inaking no deduction from repairs arising within that limit is a rude contrivance which cannot be expected to work at all evenly. A preferable course, which is frequently adopted, is to stipulate, by special clause in the policy, that no deduction shall be made for a certain period of time, which is generally eighteen months in the case of British, or twelve months in the case of Colonial built ships, from the date of launching, original register, or builders' certificate (p).

(m) Poingdestre v. Royal Exchange Assurance Corporation, Ryan & Moody, 378.

(n) Ante, Ch. VI., s. 5.

(0) See Baily's Perils of the Sea, p. 92.

(p) The following are the forms most commonly used for effecting that object

"The usual deduction of one-third of the amount of repairs is not made in the case of ships built within the limits of the United Kingdom until after eighteen months from the date of the original register."

"This Company agrees to pay without any deduction the nett cost of repairing damages recoverable under

V-THE ADJUSTMENT OF CLAIMS.

The usual mode of stating a claim for particular average on ships is to allow the cost of the repairs, as shown by the tradesmen's accounts, less the deductions for improvement which are applicable to the case. In arriving at the cost of the repairs, deduction is made for the usual discount allowable for prompt payment, as the underwriter is entitled to be placed on the most favourable footing as regards terms of settlement, whether the bills are, in point of fact, paid in cash or not. Credit has also to be given to the underwriters for the value of any old materials, such as old rope, canvas, iron, &c.; and the proceeds or estimated value of these remnants are deducted from the cost of the new work, after taking off the one-third new for old, to arrive at the amount of the particular average.

On the assumption that the charges in the tradesmen's accounts for effecting the repairs are reasonable, and the deductions duly made, the underwriters are liable for such a proportion of the amount of the claim, as the sum insured bears to the policy value. The actual outlay upon the work, if bond fide, is strong presumptive evidence of the reasonable cost of the work (q). If, however, the expenditure upon the repairs be imprudently or improperly incurred, it appears that the extra loss occasioned thereby will be disallowed (r). Where the tradesmen's bills include both the repair of damage by the perils insured against and work done in making good inherent defects or wear and tear, or in effecting improvements upon the vessel's original construction, it is the business of the adjuster to dissect the accounts, so as to separate the repairs chargeable to

this policy, when the damage has been sustained before the expiration of eighteen months from the date of the builders' certificate, in the case of ships built in the United Kingdom, or of twelve months from the same date (or date of launching, where no builders' certificate has been given) in the case of all other vessels. After

those periods, the usual deductions of new for old will be made, whether the vessel shall be on her first voyage or not."

(q) Per Lord Blackburn, in Aitchison v. Lohre, 4 Asp. Mar. L. C. 170. (r) Stewart v. Steele, 5 Scott, N. R. 927.

underwriters from those effected on owner's account, and to allow the former, after satisfying himself, so far as he has facilities for so doing, that the charges are fair and reasonable in amount.

The liability of the underwriter in respect of repairs which have been executed in good faith and with reasonable discretion is only limited by the amount of his subscription. It is so limited with respect to one accident (s); but where there are claims arising from distinct accidents the liability of the underwriter may exceed the sum insured, as, for instance, where a claim for particular average is followed by one for total loss (t). In case of damage, the shipowner has always the right to repair, but he is not bound to adopt that course. In the event of the vessel suffering an injury which is left unrepaired, the assured must wait until the expiration of the risk before he can recover for the loss sustained (u). If before the expiration of the risk the ship is totally lost by a peril insured against, the assured can recover for the total loss, but not for the unrepaired partial loss in addition; or, if she is totally lost by a peril not insured against, he cannot recover anything, as he has not in the event sustained any detriment from the partial loss (x). When, upon the expiration of the risk, the ship is lying unrepaired, the underwriters are liable for an amount equal to the depreciation in the value of the vessel. The ordinary mode of ascertaining the depreciation is, as stated by Lord Campbell (y), to take the estimated cost of the repairs, less the usual deductions for improvement; but an alternative mode, suggested by Willes, J., in Lidgett v. Secretan, is to compare the value of the ship before with her value after the accident causing the damage, the difference being the amount of the underwriters' liability (z). If a ship sustain damage which is left unrepaired, and the assured prior to the expiration of the risk, sell the ship in her damaged

(s) "The liability of insurers in a single loss is, without question, limited to the amount insured, and the expense of suing, &c." Phillips on Insurance, sect. 1742, cited and approved by Lord Blackburn, in Aitchison v. Lohre, 4 Asp. Mar. L. C. 170.

(t) Le Cheminant v. Pearson, 4

Taunt. 367.

(u) Lidgett v. Secretan, 24 L. T. Rep. 942.

(x) Livie v. Janson, 12 East, 648. (y) In Knight v. Faith, L. R. 15 Q. B. 649.

(z) 24 L. T. Rep. 942.