Identifying the proximate cause and the meaning of inherent vice — Australian and English perspectives

Abstract

The decision of Alstom Ltd v Liberty Mutual Insurance Co1 concerns the issue of the proximate cause of cargodamage with reference to the interpretation of the Institute Cargo Clauses (All Risks) and their application to s 61(1)of the Marine Insurance Act 1909 (Cth) (1909 Act). The facts of this case are strikingly similar to that of a wellknown English case, The Cendor Mopu,2 which was decided by the Supreme Court 2 years ago. Although the twocases reached similar conclusions, the reasoning in the judgments are different.Therefore, in light of therelationship between the Australian and English marine insurance law, this article is seeking a universal approachto resolve the causation question in marine cargo claims in general by looking at these two recent decisions.Despite the fact that Australia has few marine cargo claims, the analysis of these two judgments and theconclusions may equally apply to general insurance claims in Australia when determining the relevant cause ofdamage or loss.

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ORCID for Meixian Song: orcid.org/0000-0003-2315-761X

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