P. &. I Clubs Law and Practice

Page 63


Club Membership


6.1 As noted earlier,1 section 85(1) of the 1906 Act no longer accurately describes the contractual arrangements which exist between the members of the modern incorporated P&I Clubs. The insurer is no longer the members themselves but is now the corporate association which is the party with whom a member contracts. In consequence, a member’s contract is with the club and any cause of action as an assured will lie against the club and not against his fellow members.2 The legal relationship which now exists was described in an early case by Lord Esher MR in the following terms3:

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