• Neither Sammy nor Frankie had discussed insurance for the boat. Sammy assumed that Frankie had insured it, while Frankie assumed that it would be covered by Sammy’s insurance for the garage and its contents.
• Frankie has demanded that Sammy pays £4,500 for the repair of the boat. His argument is that the boat was on Sammy’s property, so Sammy was responsible for ensuring its safety. Frankie says that Sammy should pay him £4,500 out of the insurance money that he is going to be paid for the destruction of the garage and its contents.
• Sammy has refused to pay. His main argument is that Frankie should have insured the boat, as it was his property. Also, he says that, although the garage and contents was insured for £15,000, it will cost most of that to replace the building. Sammy says that he has also lost about £5,000 worth of tools and equipment.