1. Shipping (§ 199*) — General Average.

Where libelant as charterer of a vessel Issued bills of lading containing a clause providing that freight on the goods should be deemed earned “ship or goods lost or not lost,” the freight, being payable at all events, was not at risk to the libelant as freight, but was absorbed in the cargo to be lost or realized in the value thereof at the port of destination, and hence the freight should not be deducted from the value of the goods in determining their value at destination on which the libel-ant was bound to make a general average contribution.

[Ed. Note. — For other cases, see Shipping, Cent. Dig. § 627; Dec. Dig. § 199*

General average, see notes to Pacific Mail S. S. Oo. v. New York, H. & R. Min. Co., 20 O. O. A. 357; The Santa Ana, 84 C. O. A. 316J

2. Words and Phrases — “Market Value.”

The “market value” of goods is the price at which the owner or producer holds them for sale; the price at which they are freely offered in the market; such prices as dealers in the goods are willing to receive and purchasers are made to pay when the goods are bought in the ordinary course of trade.

[Ed. Note. — Eor other definitions, see Words and Phrases, vol. 5, pp. 4383-4388; vol. 8, p. 7717.]

3. Insurance (§ 477*) — Marine Policy — Nature or Contract.

A marine insurance contract, insuring contributions in general average, is a contract of indemnity requiring the insurer to pay full indemnity against loss, including loss on account of general average contribution, provided the total loss of the insured is within the limit of the insured valuation.

[Ed. Note. — For other cases, see Insurance, Cent. Dig. §§ 1248, 1249; Dec. Dig. § 477.*]

4. Insurance (§ 477*) — Marine Insurance — General Average Contribution-Extent of Diability.

Respondent issued a marine policy covering a cargo of kapok having an agreed value of $48,632 against perils of sea, including general average contributions payable by the goods insured. The goods were damaged by fire at sea to the extent of $7,037.87, which the insurer paid, and on the adjustment in general average it was found that the cargo’s contribution was $22,544.77, which amount libelant paid to the shipowner. In determining this amount the value of the cargo was based on its market value at destination, deducting such expenses as the owner must incur in the event of delivery and will escape in the event of total loss. The contributory value of the cargo was found to be $06,513.29. Jleld, that under Civ. Code Cal. § 2744, providing that a marine insurer , is liable for loss falling on the insured, through a contribution in respect to the thing insured, required to be made by him towards a general average loss called for by a peril insured against, the insurer’s liability was not that proportion of the amount of libelant’s contribution in general average as the policy valuation bore to the contributory value of the cargo, but that the amount of libelant’s general average contribution, together with the amount paid for the loss on the cargo, being less than the policy value, libelant was entitled to recover the full amount so paid in general average; the rule applied being applicable to cargo and ship alike.

[Ed. Note. — For other cases, see Insurance, Cent. Dig. §§ 1248, 1249; Dee. Dig. § 477.*

Marine insurance, general average, see note to Pacific Mail S. S. Co. v. New York, II. & R. Min. Co., 20 C. C. A. 357.]