E. SFEIR & CO vs. NATIONAL INSURANCE COMPANY OF NEW ZEALAND, LTD. PER GLYNDOVA (GHANA) LTD. [1962]DLHC1428

E. SFEIR & CO vs. NATIONAL INSURANCE COMPANY OF NEW ZEALAND, LTD. PER GLYNDOVA... [1962]DLHC1428

Date	1962-05-18
Suit No.
Citation No.	[1962]DLHC1428

OLLENNU J.

E. N. P. SOWAH FOR THE APPLICANTS GLYNDOVA (GHANA) LTD

E. AKUFO-ADDO FOR THE PLAINTIFFS-RESPONDENTS.

[1962]DLHC1428
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													<main id="main" class="content" style="min-height: 60rem" ><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#00B0F0">E. SFEIR &amp; CO<o:p></o:p><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#00B0F0">&nbsp;vs. <o:p></o:p><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#00B0F0">NATIONAL INSURANCE COMPANY OF NEW ZEALAND, LTD. PER GLYNDOVA
(GHANA) LTD. <o:p></o:p>[HIGH COURT, ACCRA]<o:p></o:p>[1962] GLR 370<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid black 1.5pt;
padding:31.0pt 31.0pt 1.0pt 31.0pt;mso-border-shadow:yes">

DATE:<span style="font-size:10.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#00B0F0"> 18TH MAY, 1962.<o:p></o:p>

</div>COUNSEL:&nbsp;&nbsp; <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid black 1.5pt;
padding:0in 0in 0in 0in">

E.
N. P. SOWAH FOR THE APPLICANTS GLYNDOVA (GHANA) LTD<o:p></o:p>

E.
AKUFO-ADDO FOR THE PLAINTIFFS-RESPONDENTS.<o:p></o:p>

</div>CORAM: <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid black 1.5pt;
padding:0in 0in 0in 0in">

OLLENNU J.<o:p></o:p>

</div><o:p>&nbsp;</o:p>JUDGMENT OF
OLLENNU J.<o:p></o:p>Each of the plaintiff-firms in these consolidated suits is insured
with the National Insurance Company of New Zealand ltd., the defendants in each
of the said suits, and each claims for loss suffered of cargo they insured with
the defendant-company under a marine insurance policy upon the ship S.S. Bygdoy
and cargo. In each of the said suits the National Insurance Company of New
Zealand Ltd., hereinafter called the Insurance Company, were sued per Messrs.
Glyndova (Ghana) Ltd., hereinafter called Glyndova, as their agents.<o:p></o:p><o:p>&nbsp;</o:p>It was pleaded for the plaintiffs that Glyndova are local agents
by whom claims made on the Insurance Company are payable. Glyndova denied that
they are agents of the Insurance Company as pleaded by the plaintiffs. They say
that the duties they have to perform for the Insurance Company are limited to
the assessment of claims on behalf of the Insurance Company, and the forwarding
of documents to the Insurance Company or branches thereof. Glyndova contend
therefore that they cannot sue or be sued on behalf of the Insurance Company.
Therefore the question as to whether or not Glyndova are agents liable to be
sued as representatives of the Insurance Company has to be resolved as a
preliminary issue, and the proceedings so far have been limited to that issue.<o:p></o:p><o:p>&nbsp;</o:p><o:p>&nbsp;</o:p>There is no doubt upon the evidence tendered on this issue, both
oral and documentary, that Glyndova are agents of the Insurance Company. The
question is what is the nature of their agency, is it a special agency or is it
a general agency? And if a special agency, what are its limits?<o:p></o:p>Glyndova’s authority to act for the Insurance Company is contained
in the letters exchanged between them and the Insurance Company. The extent of
their agency or authority therefore depends upon the interpretation to be
placed upon those documents. It is a principle of law that while as between the
agent and his principal the authority may be limited by an agreement or special
instructions, yet as regards third persons, the authority which the agent has
is that which he is reasonable believed to have, having regard to all the
circumstances, and which is reasonably to be gathered from the nature of his
employment and duties in relation to the third persons: see Halsbury’s Laws of
England, (3rd ed.) Vol. 1, page 161, para. 378; Brady v. Todd;1(1) Cox v.
Midland Counties Railway Co.;2(2) Russo-Chinese Bank v. Li Yau Sam.3(3)
Therefore in addition to the letters exchanged between Glyndova and the Insurance
Company, the court will also have to look at the endorsement on the policies
held by the plaintiff so far as they affect Glyndova, in order to determine
whether or not Glyndova are authorised to defend a suit on behalf of the
Insurance Company in a claim by the assured based upon the policies.<o:p></o:p><o:p>&nbsp;</o:p>Exhibit 1, the letter of the 24th December, 1957, by which the
Insurance Company offered the agency to Glyndova is headed: “Agency for
settlement of Marine claims”. The relevant portions of it read:<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">“We should appreciate it if you would act as our claims settling
agents should the necessity arise... In the event of your being called upon to
act on our behalf, your survey report, accompanied by a settlement of claim,
insurance policy, letter of subrogation, where necessary, and any other
relative documents together with a debit note for your fees, should be
forwarded by airmail to our branch which issued the policy concerned. That
branch would then make arrangements for settlement of the claim and your fees. Would
you kindly let us have your confirmation that you are willing to act for us
under the conditions outlined above.”<o:p></o:p>