(B) GENERAL AVERAGE

The doctrine of general average also arises in the context of maritime emergencies. An act of general average[1] is committed where an extraordinary sacrifice or expenditure is incurred in the course of a maritime adventure for the benefit of the adventure. The doctrine of general average can be analysed in restitutionary terms since it can be considered to be founded on the reversal of unjust enrichment. This is because a defendant will be liable to those claimants who suffered loss or incurred expenditure if the defendant was a party to the maritime adventure and benefited from the claimant’s acts.[2] Crucially, the defendant is only liable if the consequence of the claimant’s intervention is that the defendant’s property has been preserved.[3] It follows that the ground of restitution will be founded on the principle of necessity and that the doctrine of general average can be considered to fall within the law of restitution, although in practice provision is typically made for it by contract.

  • [1] See FD Rose, ‘General Average as Restitution’ (1997) 113 LQR 569.
  • [2] See Birkley v Presgrave (1801) 1 East 220,228; 102 ER 86, 89 (Lawrence J) and the Marine Insurance Act1906, s 66(1), (2).
  • [3] See Chellew v Royal Commission on the Sugar Supply [1921] 2 KB 627.
 
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