The ship "Diana," which was owned by the pursuers, recaptured an English ship called the "Lady Bruce" from a French privateer. The pursuers purchased an insurance policy of £400 on the salvage. However, the Diana lacked any letters of marque giving it the legal right to seize property from the enemy. After the "Lady Bruce" was recaptured by a Dutch schooner, the pursuers sued the underwriters, the defenders, for the amount due under their policy. The defenders argued that because the Diana had no letters of marque, the pursuers never possessed an insurable interest in the Lady Bruce; therefore, according to the defenders, the insurance policy was void.
William Morison, The Decisions of the Court of Session (1811), pg. 11962, , pg. App. Part 1, No. 5
Paton's Scotch Appeals, House of Lords, Vols. 1-6 (1726-1821), pg. 5:139