The law of general average is a legal principle of maritime law according to which all parties in a sea venture proportionally share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency. In the exigencies of hazards faced at sea, crew members often have precious little time in which to determine precisely whose cargo they are jettisoning. Thus, to avoid quarrelling that could waste valuable time, there arose the equitable practice whereby all the merchants whose cargo landed safely would be called on to contribute a portion, based upon a share or percentage, to the merchant or merchants whose goods had been tossed overboard to avert imminent peril. While general average traces its origins in ancient maritime law, still it remains part of the admiralty law of most countries.
The first codification of general average was the York Antwerp Rules of 1890. American companies accepted it in 1949. General average requires three elements which are clearly stated by Mr. Justice Grier in Barnard v. Adams:
- "1st. A common danger: a danger in which vessel, cargo and crew all participate; a danger imminent and apparently 'inevitable,' except by voluntarily incurring the loss of a portion of the whole to save the remainder."
- "2nd. There must be a voluntary jettison, jactus, or casting away, of some portion of the joint concern for the purpose of avoiding this imminent peril, periculi imminentis evitandi causa, or, in other words, a transfer of the peril from the whole to a particular portion of the whole."
- "3rd. This attempt to avoid the imminent common peril must be successful".
Famous quotes containing the words general and/or average:
“The general review of the past tends to satisfy me with my political life. No man, I suppose, ever came up to his ideal. The first half [of] my political life was first to resist the increase of slavery and secondly to destroy it.... The second half of my political life has been to rebuild, and to get rid of the despotic and corrupting tendencies and the animosities of the war, and other legacies of slavery.”
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“Always remember that a child doesnt have to be average to be normal. Children with very different temperaments can be equally successful.”
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