
Reported judgment
Macauley v African & Eastern Trade Corp. Ltd, 1920-36 ALR S.L. 199
Macauley v African & Eastern Trade Corp. Ltd is a reported judgment from Sierra Leone in 1920-36. Cite it as 1920-36 ALR S.L. 199. Search it by the party names, the citation 1920-36 ALR S.L. 199, or Sierra Leone reported judgment.
Sierra Leone — African Law ReportsPDF · 723 KB1920-36 ALR S.L. 199Reported judgment
SIERRA LEONE — AFRICAN LAW REPORTS
Macauley
v.
African & Eastern Trade Corp. Ltd
1920-36 ALR S.L. 199
Proceeding. Reported judgment. Sierra Leone.
,.
MACAULEY v. AFRICAN & EASTERN TRADE CORP. LTD., 192Q-36 ALR S.L. 199
s.c.
principal debtor's appeal was dismissed, and the plaintiffs were
thereupon at liberty to claim from either or both the sureties
the amount which they had bound themselves to pay. There must
be judgment for £450 against both defendants jointly and
severally with costs.
Judgment for the plaintiffs.
MACAULEY v. AFRICAN AND EASTERN TRADE CORPORATION
LIMITED
Supreme Court (Tew, C.J.): February 16th, 1931
[1] Agency- gratuitous agent- duty of care- gratuitous agent undertaking
work without requisite skill only liable for failure to exercise reasonable
care of ordinarily prudent man: Where a person, not professing to be
skilled in the particular matter, undertakes to do an act for another,
without reward, he is only bound to exercise that care which he, as an
ordinarily prudent man, would exercise if acting for himself; so that
where a person who is not specifically trained for the job attempts,
without reward, to float a submerged motor launch and tow her to safety
and fails to exercise reasonable care in so doing, he is guilty of negligence
only in so far as he has not exercised the degree of care which would
have been exercised by an ordinarily prudent man (page 203, line 37-
page 204, line 10).
[2] Shipping- collisions- damages- measure of damages for loss of launch
used in trade - cost of replacement plus loss of anticipated profits during
period reasonably required for acquisition of new launch: The primary
measure of damages in tort is the amount of the party's loss which is one
of actual outlay and anticipated profits; so that where a motor launch
engaged in carrying goods for reward is sunk through the negligence of
the guilty party, damages will amount to the replacement value of the
launch plus the value of profits lost during the time it takes to acquire a
new launch (page 209, lines 21-38; page 210, line 27-page 211, line 3;
page 211, lines 27-31).
[ 3] Shipping - salvage - duty of care - gratuitous agent undertaking salvage
operation without requisite skill only liable for failure to exercise
reasonable care of ordinarily prudent man: See [1] above.
[ 4] Tort - damages - measure of damages - loss of chattel used in trade -
cost of replacement plus loss of anticipated profits during period
reasonably required for acquisition of new chattel: See [2] above.
[ 5] Tort - negligence - damages - measure of damages for loss of launch
used in trade - cost of replacement plus loss of anticipated profits
during period reasonably required for acquisition of new launch: See [2]
above.
[ 6] Tort - negligence - duty of care - gratuitous agent - gratuitous agent
undertaking salvage operation without requisite skill only liable for
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failure to exercise reasonable care of ordinarily prudent man: See [ 1]
above.
The plaintiff brought an action against the defendants to
recover damages for negligence.
5 The plaintiff was the owner of a motor launch used for carrying
cargo which was sunk as the result of a river collision with the
launch owned by the defendants. The defendants undertook to
attempt to salvage the plaintiff's launch without reward. At the
second attempt they managed to raise it sufficiently to tow it a
10 short distance, but after two tow-ropes had given way the launch
had sunk much lower in the water and no progress could be made
against the current. It was decided to abandon the attempt; the
remaining tow-rope was cut and the launch was allowed to sink.
The plaintiff instituted the present proceedings to recover
15 damages for the loss of the launch and the use of it, alleging
negligence on the part of the defendants in (a) allowing their
launch to collide with his through excessive speed and faulty
navigation, and in (b) allowing his launch to founder while being
towed by not using the necessary skill or proper implements for
20 floating and towing it. He contended that the mere fact that his
launch sank during the salvage operations raised a presumption of
negligence on the part of the defendants and put upon them the
the onus of disproving it; and that in any case the work of salving
and towing a vessel was a work of skill and should not have been
25 undertaken by anyone other than an expert, so that the failure of
the operation was evidence of negligence for which the defendants
were liable.
The Supreme Court considered (a) what degree of lack of care
was required to establish negligence, in the case of a person
30 unskilled in a particular matter who undertook to carry out a
gratuitous service and in the case of one who was skilled and was
paid for his work; and (b) whether the loss of anticipated profits
in these circumstances was too remote so as to disentitle the
plaintiff from recovering damages.
35 The court gave judgment for the plaintiff.
40
Cases referred to:
(1) The Anselma de Larrinaga (1913), 29 T.L.R. 587, considered.
(2) The Argentina (1888), 13 P.D. 191; 59 L.T. 914; on appeal, (1889),
14 App. Cas. 519; 61 L.T. 706, dicta of Bowen and Lindley, L. JJ.
applied.
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(3) Beal v. South Devon Ry. (1864), 3 H. & C. 337; 159 E.R. 560, dicta of
Crompton, J. considered.
(4) The Clarence (1850), 3 Wm. Rob. 283; 166 E.R. 968.
(5) Duncan v. Blundell (1820), 3 Stark. 6; 171 E.R. 749.
(6) Grill v. General Iron Screw Collier Co. (1866), L.R. 1 C.P. 600; 14 L.T.
711.
(7) H.M.S. Inflexible (1857), Sw. 200; 166 E.R. 1094.
(8) Jenkins v. Betham (1855), 15 C.B. 168; 139 E.R. 384.
(9) Jones v. Fay (1865), 4 F. & F. 525; 176 E.R. 675.
(10) Lord v. Midland Ry. Co. (1867), L.R. 2 C.P. 339; 15 L.T. 576.
(11) The Mare,chal Suchet, [1911] P.l; (1910), 103 L.T. 848, distinguished.
(12) Moffatt v. Bateman (1869), L.R. 3 P.C. 115; 16 E.R. 765.
(13) The Notting Hill (1884), 9 P.D. 105; 51 L.T. 66.
(14) Pappa v. Rose (1872), L.R. 7 C.P. 525; 27 L.T. 348.
(15) Preston Corp. v. Biornstad, [1898] A.C. 513.
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(16) The Robert Dixon (1879), 5 P.D. 54; 42 L.T. 344, distinguished. 20
(17) Ruddock v. Lowe (1865), 4 F. & F. 519; 176 E.R. 672.
(18) Shiells v. Blackburne (1789), 1 H. Bl. 159; 126 E.R. 94.
(19) Vaughan v. Taff Vale Ry. Co. (1860), 5 H. & N. 679; 157 E.R. 1351.
(20) The West Cock, [1911] P. 208; (1911), 104 L.T. 736, distinguished. 25
(21) Wilson v. Brett (1843), 11 M. & W. 113; 152 E.R. 737.
Beoku-Betts for the plaintiff.
TEW, C.J.:
The plaintiff is the owner of the motor launch "Wilmac" which
was sunk in the Sherbro River on October 30th, 1928 as the result
of a collision with the motor vessel "Kite" owned by the de
fendants. Two days later the defendants' agent, Minall, made an
attempt to salve the ':Wilmac" and tow her to Bonthe; but the
attempt failed and the "Wilmac" sank in deep water and was lost.
The plaintiff claims the sum of £500: £350 for the value of the
"Wilmac" and £150 in respect of the loss of the use of the launch.
The plaintiff has delivered particulars of the alleged negligence
of the defendants in (a) allowing the "Kite" to collide with the
"Wilmac"; and (b) in allowing the "Wilmac" to founder while
being towed. The particulars under these two heads are as follows:
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(a) 1. The defendants were driving the said motor launch at an
excessive speed.
2. The defendants drove their motor launch out of the usual
channel in the river on to the motor launch of the plaintiff.
3. The defendants did not sound any horn or give any
warning of the approach of their launch.
4. The motor launch of the defendants did not carry suf
ficient light.
(b) 1. The defendants did not use the necessary skill in floating
or towing the boat of the plaintiff.
2. The defendants did not use proper implements for
floating or towing the boat of the plaintiff.
3. The defendants did not use sufficiently strong rope for
towing the boat of the plaintiff.
At the trial the plaintiff's counsel did not rely upon particulars
3 and 4 under (a).
The collision between the two vessels occurred about 7 p.m. on
October 30th, 1928, between York Island and Bonthe, when the
"Wilmac" was proceeding towards Bonthe and the "Kite" in the
opposite direction. As might be expected after the lapse of more
than two years, the evidence as to the collision is very conflicting
and frequently obscure. The difficulty of arriving at a decision is
enhanced by the fact that the court had not the advantage of a
chart on a large scale, or of any expert evidence as to the width
of the channel, or the customary method of navigation in the
Sherbro River, or indeed on most of the material points.
Again, there were in 1928 no local rules providing either for the
course to be taken by vessels meeting at night, or for the lights to
be exhibited by a vessel at night. It was not until last year, when
the Ports and Inland Waters Ordinance, 1930 was enacted, that any
ordinance existed under which such rules could be made.
[The learned Chief Justice then reviewed the conflicting evidence
as to the causes of the collision and found that there had been no
negligence on the part of the "Kite," since it was the "Wilmac,"
apparently carrying no lights, who had left her course on her side
of the river and had crossed the bows of the "Kite," and that the
"Kite," carrying plenty of lights, had not been negligent in pro
ceeding at full speed at that particular place of the river. The
learned Chief Justice continued:]
The question whether the defendants were negligent in their
attempt to salve the "Wilmac" is even more difficult to determine
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and partly for the same reasons. There is an entire lack of really
expert evidence, and it is probable that counsel, the court and the
witnesses were all almost equally unfamiliar with the technical
details of a salvage operation. It was argued for the plaintiff that
the mere fact that the "Wilmac" sank during the course of the
operations raised a presumption of negligence on the part of the
defendants and put upon them the onus of disproving the
negligence. Whether such an inference arises in any particular case
must be decided on the facts of that case: see Broom's Legal
Maxims, 8th ed., at 224 (1911); and in this case I do not think
that the mere fact that the "Wilmac" sank while being towed by
the defendants gives rise to that inference. The plaintiff's counsel
referred to several cases of towage to which the maxim res ipsa
loquitur had been held to apply: for example, The Marechal
Suchet (11) ([1911] P. at 12; 103 L.T. at 851), The West Cock
(20) ([1911] P. at 224; 104 L.T. at 743), and The Robert Dixon
(16) (5 P.D. at 57; 42 L.T. at 344). In all these cases there was a
contract of towage by a tug presumably efficient and well
equipped and capable of performing the contract without danger
to the tow; and therefore, if the tow was damaged, it was
reasonable to presume negligence on the part of the tug and it was
for the owners of the tug to rebut that presumption. Here the
facts were very different. The "Wilmac" had been sunk in a
collision the responsibility for which had not then been deter
mined, and the fact that she sank again while being towed might
be due just as well to her own defects as to the fault of the
defendants. This point, however, in this particular case is not one
of any practical importance, as the evidence is all that of the
defendants' witnesses, and this court has to decide on that
evidence, as tested by cross-examination, whether the defendants
were negligent or not.
It will be convenient here to refer to the defendants' pleading
that they lent their vessels, men and implements to the plaintiff
at his request to enable him to salve his launch. The evidence does
not support this pleading in any particular; all the work was done
by the defendants themselves, and the plaintiff had no hand in it
at all.
The defendants, through their agent, undertook to attempt to
salve the "Wilmac" without reward. The question for deter
mination therefore is twofold: First, what degree of care were the
defendants bound to exercise? Secondly, did they exercise the
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requisite degree of care? The principle governing the matter is
laid down in 21 Halsbury 's Laws of England, 1st ed., at 37 4,
para. 641 in the following terms:
"Where a person, not professing to be skilled in the particular
matter, undertakes to do an act for another, without reward,
he is only bound to exercise honestly that care which he, as
an ordinarily prudent man, would exercise if acting for him
self. He is not to be held liable for a mistake, or for an error
of judgment, which a reasonably prudent man might commit,
or for mere non-success."
It has sometimes been said that a person performing a gratuitous
service is responsible only for "gross negligence." This term was
described by Rolfe, B. in Wilson v. Brett (21) as the same thing as
negligence "with the addition of a vituperative epithet," but was
employed by Lord Chelmsford in Moffatt v. Bateman (12) (L.R. 3
P.C. at 122; 16 E.R. at 768) as "a term which is sufficiently
descriptive of the degree of negligence which renders a person
performing a gratuitous service for another, responsible." I may
also refer here to the dictum of Willes, J. in Lord v. Midland Ry.
Co. (10) (L.R. 2 C.P. at 344): "The term 'gross negligence' is
applied to the case of a gratuitous bailee who is not liable unless
he fails to exercise the degree of skill which he possesses." [These
words do not appear in the report of the case at 15 L.T. 576.] In
Shiells v. Blackburne (18) the defendant, having undertaken
voluntarily to enter a parcel of goods for export together with a
parcel of his own, had made a mistake which resulted in both
parcels being seized by the customs authorities. It was held that,
as the defendant had received no reward and was not of a
profession which implied the possession of skill in the particular
service, he was not liable. It would have been otherwise if the
defendant had, for example, been a clerk in the customs house,
because his position would have implied "a competent degree of
knowledge" in the making of such entries. In Beat v. South Devon
Ry. (3) Crompton, J. said:
". . . [ F] or all practical purposes the rule may be stated to
be, that the failure to exercise reasonable care, skill and
diligence is gross negligence. What is reasonable varies in the
case of a gratuitous bailee and that of a bailee for hire. From
the former is reasonably expected such care and diligence as
persons ordinarily use in their own affairs, and such skill as
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he has. From the latter is reasonably expected care and dili
gence, such as are exercised in the ordinary and proper course
of similar business, and such skill as he ought to have, namely
the skill usual and requisite in the business for which he
receives payment." 5
In Grill v. General Iron Screw Collier Co. (6) (L.R. 1 C.P. at 612;
14 L.T. at 715) Willes, J. said: "Confusion has arisen from regard-
ing negligence as a positive instead of a negative word. It is really
the absence of such care as it was the duty of the defendant to
use." Similarly in Vaughan v. Taff Vale Ry. Co. (19) the same 10
learned judge defined negligence as "the absence of care, according
to the circumstances."
These are some of the leading authorities on the subject of the
degree of care required from a person who undertakes a gratuitous
service, and the facts of this case must be reviewed in the light of 15
those authorities. But before proceeding to an examination of
the facts, I have to consider an argument addressed to me by the
plaintiff's counsel which is based on a dictum in 21 Halsbury 's
Laws of England, 1st ed., at 369, para. 634 that- "a man should
not ... undertake to do a work of skill unless he is fitted for it, 20
and it is his duty to know whether he is so fitted or not." Mr.
Betts argued that the work of salving and towing a vessel is a work
of skill, and that Mr. Minall, not being an expert in such matters,
should not have undertaken this work, and that his failure to
perform it successfully is evidence of negligence for which the 25
defendants are liable.
This question is discussed in Beven on Negligence, 4th ed., at
1321-1325 (1928) and the authorities referred to there are much
the same as those cited in support of the dictum quoted above
from Halsbury. Beven expresses the proposition thus: "A person 3 0
holding himself out to do certain work, impliedly warrants his
possession of skill reasonably competent for its performance. If he
have not that skill he is liable as for negligence."
An examination of the authorities shows that in all the cases,
not only was the work done for reward, but also the person 35
adjudged negligent had held himself out as possessing skill in the
particular work. In Duncan v. Blundell ( 5) the plaintiff had
erected a stove which had failed in its object and sued his
employer for work and labour done. In nonsuiting the plaintiff
Bayley, J. said (3 Stark. at 7; 171 E.R. at 749): "Where a person is 40
employed in a work of skill ... he ought not to undertake the
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work if it cannot succeed, and he should know whether it will or
not." Ruddock v. Lowe (17) was a case of a person not qualified
as a doctor undertaking for reward to treat a patient for disease,
and Jones v. Fay (9) was a similar case of a chemist who under-
5 took what was really a doctor's work. In Jenkins v. Betham (8)
some country surveyors had undertaken work in connection with
ecclesiastical dilapidations which required some knowledge of the
branch of the law affecting such matters, and the court held that
they might properly be expected to be familiar with the broad
10 principles of the law. But in Pappa v. Rose (14) it was held,
distinguishing Jenkins v. Betham, that where a broker had been
employed as a sort of arbitrator to decide on the quality of some
goods, there was no obligation to him to exercise any degree of
skill, provided that he acted to the best of his judgment. Lastly,
15 there is the case, cited by the plaintiff's counsel, of Preston Corp.
v. Biornstad (15) where the appellants, who had undertaken a
contract of towage under statutory authority, were held liable for
damage caused to a vessel under tow by lack of reasonable care
and skill on their part.
20 In none of these cases does the principle laid down seem to me
to apply to the facts of this case. Here the service attempted was
purely voluntary, whatever may have been the motives which
prompted the offer. Mr. Minall never held himself out as possessing
special skill in salving or towing vessels. The plaintiff knew exactly
25 what was Mr. Minall's ordinary occupation, and was content to
allow him to make the attempt. Can he now turn round and say
"You ought never to have made the attempt, because you did not
possess the requisite knowledge of a highly technical operation,
and you must therefore compensate me because your attempt was
30 unsuccessful?" Such an argument in my opinion has nothing either
in law or in common sense to commend it.
The evidence as to the conduct of the salvage and towing
operations is that of Minall, of Mosquito and Caulker, captain and
engineer of the "Kite" respectively, and of Jones, the Super Cargo
35 of the "Kite." It appears that on the day after the collision Minall
sent a lighter and the launch "Swift" to try to float the "Wilmac."
He says that Stott, his European assistant, who is not now in
Sierra Leone, was in charge of the operations, and that he himself
does not know what was done that day, except that the attempt
40 was unsuccessful. Stott, he says, had no training in such matters,
but had once assisted him to raise a launch that had been sunk
near the wharf at York Island. Jones says that on that day he saw
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Minall and Stott leave for York Island with a lighter, the "Kite"
and the "Swift"; that they subsequently came back in the "Swift";
and that he was then ordered by the beachmaster, Lowe, to "go
and see what the boys were doing." He went to the scene in the
"Swift" and gave orders to the people who were working. That 5
day the "Wilmac" was moved about 20 yds. and then all three
vessels returned to York Island. The evidence of this witness is as
unsatisfactory on this point as on others. He is directly contra
dicted, both by Minall, who says that only the lighter and the
"Swift" were ordered to go that day and that he himself stayed 10
behind, and by Mosquito, who says that he did not take the
"Kite" there, but saw the lighter and the "Swift" proceeding in
that direction. But, however that may be, it is quite clear that
Minall adopted a very casual attitude in the matter that day. By
his own admission that he does not know what happened, it seems 15
certain that he never received a detailed report of what had been
done and it is possible that Stott did not visit the "Wilmac" at all
that day, even though he may have been ordered to do so. Surely
it was the duty of Minall, as a prudent and sensible man, to see
that any attempt to salve the "Wilmac" was conducted in the 20
way most likely to ensure success. He was in charge of the
defendants' affairs and, having been in the Navy as a seaman for
three and a half years, he was obviously the person best qualified
to superintend the salvage operations; yet he remained at York
Island that day and entrusted the conduct of the operations to a 25
subordinate. Would he have been equally indifferent if the
"Wilmac" had belonged to his own company? I think the answer
must be in the negative.
[The learned Chief Justice then reviewed the evidence as to the
events of the following day when a further attempt was made to 30
salve the "Wilmac," an attempt that was, after several mishaps,
finally abandoned and the "Wilmac" was allowed to sink. The
learned Chief Justice continued:]
Now up to this point on that day I am of opinion that all
reasonable care had been exercised by the defendants. The towing 35
ropes had to be attached under water - work which could only
be done by the Africans - and I do not think that, in selecting the
parts to which to attach them, these men showed any lack of care.
Minall has given it as his opinion that, if these parts had held as
they should, the "Wilmac" could have been towed to Bonthe 40
quite safely, and I see no reason to disbelieve that. But I am by
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no means satisfied that the attempt should have been abandoned
at the time when Stott gave the order to cut the rope. Minall
stated that, but for the strength of the adverse current, he could
have towed the "Wilmac" to a bank about 200 yds. away and
5 beached her. The river is tidal and there is a rise and fall of six to
eight feet. Could nothing have been done to keep the "Wilmac"
afloat until the tide turned? There may be reasons why it was
impossible. If so, they are not apparent to the lay mind, and there
is no expert advice available. Again, the question occurs, would
10 the same course have been adopted if the "Wilmac" had been the
property of the defendants? And again the answer must be in the
negative. In my opinion there was lack of reasonable care in this
matter on each of the days on which the attempt was made. On
the first occasion Minall, the person in the responsible position,
15 gave no personal attention to the matter, and it is impossible to
say that the first attempt may not have left the "Wilmac" in a
worse state and thus endangered the success of the second. As to
the second occasion, I can only repeat my opinion that it was
unreasonable to abandon the effort to save the "Wilmac" merely
20 because at that time she could not be towed against the current.
My conclusion is that the defendants have been guilty of negli
gence and must therefore compensate the plaintiff for his loss.
The evidence as to the value of the "Wilmac" at the time of her
loss is naturally conflicting. It is proved that the plaintiff bought
25 her for £25 and paid £15 to a carpenter named Campbell for
repairs to her hull. He says that he bought her only two or three
months before she was sunk, but on this point he is contradicted
by his own witnesses. He estimates that he spent £300 in putting
her into good condition, including an expenditure of about £140
30 on spare parts for the engine. He had no record of any expenditure
and was loath to supply details, but under pressure gave details of
expenditure on copper, oakum, nails and corrugated iron
amounting to about £30. He says that he also paid £9 for repairs
to the engine when he bought the launch and £3 for fitting spare
35 parts which he procured from America. Mr. Minall's estimate of
the cost of the materials required for the hull of a launch of the
size of the "Wilmac" is less than half that of the plaintiff.
It can safely be said at the outset that the plaintiff's evidence
as to his expenditure on spare parts for his engine is absolutely
40 unworthy of credit, and that he has deliberately attempted to
deceive the court. He produced a statement of account rendered
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by a firm in New York showing that on October 15th, 1928 goods
to the value of $104 were supplied to him on invoice No. 3709.
He also had in his possession a credit note from the same firm
dated October 31st, 1929 for $99 in respect of spare parts charged
on invoice No. 3709 and returned, and a debit note of the same
date for $31 on account of expenses incurred in connection with
the return of that same case of spare parts. He swore that he had
had two previous invoices for spare parts which had all been fitted
on the "Wilmac," and that he had lost these invoices. He could
give no details of the cost of those parts, and I do not believe for a
moment that he ever bought them. I believe also that his estimate
of expenditure altogether is grossly exaggerated. Nobody in his
senses would spend £300 on a launch which was only worth £25
when he bought it. He would be far more likely, especially if he
were an African, to put the launch into some kind of running
order at as low a cost as possible and run her in that condition as
long as she would hold together. Taking the mean between
Minall 's estimate of the value of materials and the plaintiff's, and
conceding that some repairs were done to the engines, I assess the
value of the launch at the time of her loss at £70.
The final question for decision is what amount, if any, the
plaintiff ought to receive in respect of the loss of use of the
"Wilmac." On the summons he claims £500 in all, and in the
statement of claim £350 for the launch itself and an unascertained
amount for loss of use at the rate of three guineas a day as from
October 30th, 1928. What period is supposed to be covered by the
second part of the claim is left absolutely uncertain; but the
amount is impliedly limited to £150 and the period therefore
cannot be more than 48 days. This is by no means an unreasonable
period to enable the plaintiff to obtain another launch.
Whether the plaintiff is entitled to be compensated for the loss
of the use of his launch is a very difficult question. In Beven on
Negligence, 4th ed., at 113 (1928) the principle is stated thus:
"The primary measure of damages then, whether in contract
or tort, in Admiralty or at common law, is the amount of the
party's loss, and this loss may be analysed into two
components - actual outlay and anticipated profits. But the
anticipation of profits must not be too sanguine."
The learned author then cites the case, which was relied on here
by the defendants' counsel, of The Anselma de Larrinaga (1) in
which it was held by Bargrave Deane, J. that the owners of a
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trawler sunk in a collision could not recover from the owners of
the wrong-doing vessel the loss of the profits which they might
have made by fishing during the period which was reasonably
necessary for the obtaining of a new vessel. The reason for this
5 decision was that it was impossible to estimate with any certainty what profits, if any at all, would have been earned - in other
words, that the damages were too speculative. This case, decided
in 1913, has not been overruled and is still an authority; and I have
to consider whether the principle is applicable to the present case.
10 In H.M.S. Inflexible (7) damages for loss of profits were awarded
to an East Indiaman injured in collision with a warship. In The
Argentina (2) the House of Lords, affirming the decision of the
Court of Appeal, held that a vessel injured in a collision could
recover damages in respect of loss of earnings in an engagement
15 which had been arranged for before the collision. Lord Herschell,
however, in whose judgment the other Lords concurred, went
further than that and expressed the opinion that, had no previous
engagement been arranged, it would have been right, and the usual
course, to award damages "in respect of the loss of earnings
20 which it must reasonably have been anticipated would ensue
during the time of detention" (14 App. Cas. at 523-524; 61 L.T.
at 708). A similar opinion had been expressed in the Court of
Appeal by Bowen and Lindley, L.JJ., whose joint judgment was
adopted entirely by Lord FitzGerald in the House of Lords, in
25 language so lucid and forcible that I think it desirable to quote it
at some length. It runs thus (13 P.D. at 201-202; 59 L.T. at 917):
"A collision at sea caused by the negligence of an
offending vessel is a mere tort, and we have only therefore to
consider what has been in the particular case its direct and
30 natural consequence. This consequence (in the case of an
innocent ship which is disabled by an accident) is that its
owner loses for a time the use which he otherwise would have
had of his vessel. There is no difference in principle between
such a loss and the loss which the owner of a serviceable
35 threshing-machine suffers from an injury which incapacitates
the machine, or the loss which a workman suffers who is
prevented from earning money by the wrongful detention of
plant which cannot at once be replaced. A ship is a thing by
the use of which money may be ordinarily earned, and the
40 only question in case of a collision seems to me to be, what is
the use which the shipowner would, but for the accident,
210
MACAULEY v. AFRICAN & EASTERN TRADE CORP. LTD., 1920-36 ALR S.L. 199
have had of his ship, and what (excluding the element of
uncertain and speculative and special profits) the shipowner,
but for the accident, would have earned by the use of her. It
is on this principle alone that it is habitual to allow in
ordinary cases damages for the time during which the vessel is
laid up under repair in addition to the cost of the repairs
themselves. But this is merely an application of the general
principle, and is not the measure in all cases of the loss. It
might conceivably, upon the one hand, be the fact that
the damaged ship would not and could not have earned
anything at all while laid up for repairs, though such a case
must necessarily be exceptional. In such circumstances
nothing ought to be allowed for demurrage. Upon the other
hand the direct consequence of the accident might be that
the injured vessel was necessarily thrown out of her employ
ment, not merely during the period of repair, but for a longer
period still. In such a case the loss could not properly be
measured by the time taken in repairs alone."
There are decisions in the books to the contrary effect, such as
The Clarence (4) and The Notting Hill (13); but there is no such
authoritative case as that of The Argentina. Each case must of
course be decided on the evidence adduced, and it may well be
that in the cases in which loss of profits was held to be too
speculative or remote as a measure of damages, the court was not
satisfied that any profits could with certainty be said to have been
earned by the injured vessel in similar circumstances at other
times. In this particular case the plaintiff has sworn that he used
the "Wilmac" continuously for carrying produce for reward, and
it has not been suggested that that was not so. I cannot think that
it is a case in which damages for loss of use of the launch should
be regarded as too remote.
The plaintiff estimates his daily profit at 3gns., that being the
average amount at which he used to let the "Wilmac" out on hire.
Mr. Minall agrees with that figure, but says that the net profit
would not be more than £1 a day. In the absence of any other
evidence, and allowing for a conservative estimate by Mr. Minall,
I fix the amount due to the plaintiff under this head at £60, that
is, 25s. a day for 48 days.
There will be judgment for the plaintiff for £130 with costs.
Judgment for the plaintiff
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