Gulf Refining Co. v. Atlantic Mut. Ins. Co., 279 U.S. 708 (1929)
U.S. Supreme CourtGulf Refining Co. v. Atlantic Mut. Ins. Co., 279 U.S. 708 (1929)
Gulf Refining Company v. Atlantic Mutual Insurance Company
Argued April 17, 1929
Decided May 27, 1929
279 U.S. 708
CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE SECOND CIRCUIT
1. In adjusting a general average loss upon cargo insurance under a valued policy, the insured is co-insurer to the extent that the sound value of the cargo at the time of contribution exceeds the agreed value in the policy, and recovers that proportion of his loss which the agreed value bears to such sound value. P. 279 U. S. 709.
2. The co-insurance principle, long and consistently applied in the case of particular average losses under both open and valued policies, gives a reasonable and equitable effect to the stipulation fixing value, consonant with principles generally applicable to marine insurance. It may be applied to general average contributions with like effect and with added consistency and harmony in the law. P. 279 U. S. 712.
3. The application of the agreed value to the adjustment of the insurance loss does not depend on estoppel. P. 279 U. S. 712.