Counsel submitted that the third party could only take out “full insurance
coverage." if it had notice of the maximum value of the goods it was bound to
transport at any given time under the agreement of transport but no evidence
of such notice was proved in evidence. Quoting the Interpretation of
Contracts by Lewinson (supra) page 211 a phrase maybe rejected as
meaningless if it has no application in the circumstances of the case and
invited court to reject the above cited phrase.
Counsel further submitted that TPW1 testimony is that the Third Party took
out a policy of insurance and has had the same renewed by way of a renewal
endorsement exhibit TP1 which was presented to the Defendant as evidence
of a valid policy. Instructions to transport the cargo were given by the
defendant through a work order exhibit TP4 and that the defendant did not
declare the value of the goods to the Third Party. If the Third Party knew the
value of the cargo, it would have taken the necessary steps to make
arrangement to insure the same. Counsel submitted that the doctrine of
estoppels was applicable in this case for the assertion that the defendant
accepted the insurance cover that the TP had notified to it. Counsel relied on
the doctrine of estoppels explained in Halsburys Laws of England 4th Ed Vol 16
Para 955. Estoppels may arise by express representation or conduct which
includes negligence and silence. Upon notice of the insurance cover counsel
contended that the defendant did not question it or object and went ahead to
give the third party goods worth 303,330 US$ without notifying the Third party
of the same when it clearly limit of the insurance policy.
The Third Party acted on the representation of the Defendant by accepting
goods of a value exceeding the maximum cover in the insurance policy thereby
changing its position in by increasing its exposure to its prejudice.
Consequently the third party’s counsel contended that the Defendant is bar by
estoppels from denying that the insurance policy taken out by the Third Party
was acceptable under clause 8.2 of the contract. Secondly the Defendant is
barred by estoppels from demanding from the Third Party any amount of
money exceeding US.D 55,000 as indemnity for loss.
The Defendant invoked clause 8.3 and submitted that in any event the taking
out of insurance is irrelevant in determining the Third Parties liability while the
third party’s counsel disagreed with the interpretation and submitted that the
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