A navigation error caused a cargo ship to run aground on a reef. The s

A navigation error caused a cargo ship to run aground on a reef. The ship, valued at $1.5 million, was carrying $1.5 million in grain and $1.5 in electronic devices. The ship sustained a $150,000 physical damage loss.

If this loss is a “particular average” loss, how will the loss be settled?
A) The owners of each of the three interests are responsible for $50,000.
B) The owner of the ship is responsible for the entire $150,000 loss.
C) The two cargo owners are each responsible for $75,000 of the loss.
D) The owner of the ship is responsible for the first $100,000 of the loss, and the two cargo owners are each responsible for $25,000 of the loss.

ANSWER

Answer: B