AVERAGE, in Marine Insurance. If any part of the ship or furniture, or of the goods, is sacrificed for the sake of saving the rest, all parties interested must contribute towards the loss. This contri bution is properly called "Average." It is sometimes called general average, in opposition to special or particular aver age, which is the contribution towards any kind of partial damage or loss, or gross average, in opposition to petty average, which is the contribution men tioned in the bill of lading towards the sums paid for beaconage, towage, &c. The principle of average is recognised in the maritime law of all nations. It was introduced into the civil law from the law of Rhodes ( Dig. 14, tit. 2, " Lex Rhodia de Jactit ; " and the Commentary of Peckius, In tit. Dig. et Cod. " Ad Rem Nanticam pertinentes" '). In order to constitute such a loss as is the subject of average, it must be incurred by design : the masts must be cut away, or the goods thrown overboard; and this must be done for the sake of saving the rest, as in the case of throwing goods overboard to keep the vessel from sinking or striking on a rock, or to lighten her that she may escape from an enemy, or of cutting away a mast or a cable to escape the perils of the storm. The necessary consequences of these acts are also the subjects of average ; as where, in order to throw some goods overboard, others or some parts of the ship are damaged ; or where it becomes necessary, in order to avoid the danger or repair the injuries caused by a storm or the enemy, to take goods out of the ship, and they are in consequence lost. The expenses also incurred in these operations are equally the subject of average. But the injuries incurred by a ship during an engagement with the enemy, or from the elements in consequence of measures taken to escape from an enemy, are not of such a nature as to fall within the defini tion. If goods are laden on deck, no average is recoverable inof the loss occasioned by over board, unless by the usage of trade such goods are usually so laden. If a ship is voluntarily stranded for the purpose of saving her and the goods, and afterwards gets off safely, the expenses incurred by the stranding are the subject of general contribution ; but if the ship be wrecked in consequence of the voluntary stranding, the wrecking, not being voluntary, is therefore not such a loss as calls for a ge neral contribution. If, in consequence of
such an injury done to a ship as would be the subject of average, she is compelled to go into port to repair, the necessary expenses incurred in refitting her, so as to enable her to prosecute her voyage, and the amount of wages, port-dues, and provisions expended to accomplish that object, are also the subject of average ; and if the master is unable to obtain the money necessary by any other means than by the sale of a part of the cargo, the loss caused to the merchant upon such sale is also the subject of average. If, in consequence of the sacrifice made, the ship escape the danger which immediately threatens her, but is afterwards wrecked or captured. and the remaining goods, or part of them, are saved or recaptured, these are bound to contribute average towards the loss in the first instance in curred, in proportion to their net value in the bands of the merchant after all ex penses of salvage, &c. have been paid.
The things upon which average is payable are, the ship, boats, furniture, &c., but not provisions or ammunition ; also all merchandise, to whomsoever be longing, which is on board for the pur poses of traffic, but not the covering, apparel, jewels, &c. of parties on board for their own private use. The freight due at the end of the voyage is also sub ject to average. The goods are to be valued at the price for which they would have sold at their place of destination. If the ship, by reason of what happened when the average was incurred, return to her port of lading, and the average is there settled, the goods are to be valued at the invoice price. The losses incurred by the ship and furniture, &c. are calculated at two-thirds of the price of the new articles rendered necessary to be pur chased. The usages of other countries as to all matters connected with average differ in some respects both from those of each other and those of this country. Where the average has been adjusted acccrding to the established law and usage of the country in which the adjust ment was made, it is binding upon all the parties to it, unless there be some special contract between them which provides otherwise. [ADJUSTMENT.]