The Scorpion, a ship with a value of $100 million, is carrying cargo for General Motors valued at $50 million, John Deere Tractors worth $70 million, Glidden Paint Products valued at $30 million and American Sterilizer products which are worth $20 million. The Scorpion is attacked by a shipload of Somali Pirates off the Horn of Africa. In order to outrun the pirates, the John Deere cargo was thrown overboard to lighten the load of the Scorpion The settlement method applicable to this loss is known as: Particular average General average Calculate how this loss would be settled and divided among the participants. General Average Example Value of Ship and Freight-$15 Mil Value of steel cargo - $2 Mil Wal-Mart appliances cargo - $3 Mil $1 mil of steel jettisoned to save ship All values equal $20 Mil Payments under general average: Wall mart = 3/20 of 1 mil = $150,000 Steel owners = 2/20 of 1 mil = $100,000 Ship owners = 15/20 of 1 mil = $750,000