Baxter v. New England Marine Insurance

6 Mass. 277
CourtMassachusetts Supreme Judicial Court
DecidedMarch 15, 1810
StatusPublished
Cited by16 cases

This text of 6 Mass. 277 (Baxter v. New England Marine Insurance) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baxter v. New England Marine Insurance, 6 Mass. 277 (Mass. 1810).

Opinion

Sedgwick, J.

There is no question of the right of the plaintiffs to recover in this case, provided the defendants fail in their defence The interest of the plaintiffs and the loss by capture, as alleged, were admitted at the trial. The defendants produced a sentence or decree of the Court of Vice-Admiralty at Gibraltar, declaring the brigantine and cargo insured to be subject and liable to confiscation for a breach of the blockade of Cadiz, by egress, and for other sufficient reasons, and condemning the same as good and lawful prize.

There is no doubt that if, during the voyage insured, the captair [230]*230attempted a breach of a legal blockade, he thereby incurred a for feiture of the vessel and cargo; and if the loss sustained was occa' sioned thereby, that the underwriters are discharged.

The defendants, at the trial, insisted that the decree was conc?\tsive evidence of a breach of blockade; but the judge admitted other evidence, and on the whole the jury found that there was not a breach of blockade. If the decree ought to have been considered as conclusive evidence, then the other evidence was improperly admitted, and there ought to be a new trial.

The condemnation, as expressed by the sentence, is for the breach of blockade, and “ for other sufficient reasons.” Is this to be considered as a condemnation for a breach of blockade ? The judge, in his sentence, declares the brigantine to have broken the blockade by egress, after the public notification thereof, and during its notorious existence de facto; and he thereupon pronounced the brigantine, &c., thereby, and “for other sufficient reasons,” to have become subject and liable to confiscation ; and he [ * 281 ] * condemned the same, accordingly, as good and lawful prize. What those other sufficient reasons were, is not expressed in the sentence. I consider those words as merely surplus-age, and as having no operative meaning or effect; that the decree, therefore, is to be understood as a sentence of condemnation for a breach of blockade.

This brings us to the great question in this case, viz., whether a sentence of a foreign Court of Admiralty, (which has not been eversed,) as to that which is clearly expressed in it, is conclusive evidence against the plaintiffs; so that it cannot be.controverted by them in a suit upon the policy of insurance.

This is certainly a question of great importance. It is a question relative to which great learning and great talents have been divided ; and great and enlightened nations have adopted different rules; England, considering foreign sentences as conclusive, while France holds them evidence to be weighed and compared with such other evidence as may be adduced. After all, however, it is less important, perhaps, what the rule is, than that it should be established and known. If foreign sentences are to be received as conclusive against the assured, the premium of insurance will in reason, and I presume in fact also, be less ; if they are not conclusive, but may be contested by the assured, the premium will of course be greater.

When a ship is captured, at a distance from home, by a belligerent, for a breach of neutral duties, she must, from the nature of the thing, be tried in the court of the captor ; and the business of defending her devolves on the confidential agents of the insured the captain or supercargo, or both. The captain, it is true, is con [231]*231sidered as the general agent of all concerned, and bound to act for their interest. Still, however, his feelings, from the nature of his relation to the assured, and from his dependence upon him, will dictate a stronger sympathy with his interest, than with that of the insurer. If, then, a condemnation for a breach of neutral duties will necessarily fall upon the insured, *and dis- [*282] charge the underwriter conclusively from indemnifying for the loss sustained thereby, such a state of things will afford every possible motive to exertion to procure a favorable sentence.

On the contrary, a state of things may be supposed, in which it would be beneficial to the assured, that a condemnation should take place. If, for instance, there be a warranty of neutrality, and the ship be taken by a belligerent, as the property of his enemy, — upon a trial of the claim by the captain, from the state of the markets, or from other causes which may be supposed, it may be his wish that a condemnation should be had. The motives to remissness, or even to more culpable conduct, may be such as would not in all instances be resisted. Admit that, if his conduct is so gross as to afford positive evidence of fraud, or so negligent as to imply it, it will be a sufficient defence for the insurer against the loss by the condemnation, if it can be proved ; yet, in many cases, the facts in a distant country may never be intimated to the underwriter, and even where they should be suggested, it might be impossible to procure proof of them. A door against every such mischief and fraud will be effectually closed, provided a sentence of condemnation, in such cases, is holden to be conclusive against the insured.

Besides, the evidence of the neutral character of the ship, and of her conduct, to repel a charge of a breach of neutral duties, is most in the power, and can be most easily produced by those who have the charge of her, and by whom, on her being libelled, the claim must be made. And wherever the claimant is dissatisfied with a decree of an inferior Court of Admiralty, it is in his power to procure a revision of his cause by the superior tribunal of the nation of the captor.

From these considerations, it is evident to me that it will be most beneficial to neutral commerce, and most for the interest of neutral nations, that the loss sustained by foreign sentences of condemnation, in such cases as that * under consideration, [ * 283 ] should fall upon the insured. I think, for the reasons which I have mentioned, that condemnations will be more resolutely contended against, and that they will, in all probability, be less numerous. If the insurance be upon foreign neutral trade, it is manifest that the rule will be most beneficial to us, because it will be a security to the assurers, who are our citizens. If both the [232]*232insurer and insured belong here, it is then only a question of loss between them ; and such a rule, consistent with justice, should be established, as will reduce that loss as much as possible; and that, as I have suggested, is to throw it, in all cases, upon the assured.

It seems to me that it must be understood, as the meaning of the contract under consideration, that the underwriter did not, by it, assume the risk of an unjust or mistaken foreign sentence of condemnation, but that it remained with the insured. Undoubtedly it was competent to the parties to have formed such a contract as would render the insurer in such case liable; but it would, to my mind, have been an irrational one.

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Bluebook (online)
6 Mass. 277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baxter-v-new-england-marine-insurance-mass-1810.