Compagnie Generale Transatlantique v. Hoguet

35 F. 835, 1888 U.S. Dist. LEXIS 150
CourtDistrict Court, S.D. New York
DecidedJuly 10, 1888
StatusPublished
Cited by10 cases

This text of 35 F. 835 (Compagnie Generale Transatlantique v. Hoguet) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Compagnie Generale Transatlantique v. Hoguet, 35 F. 835, 1888 U.S. Dist. LEXIS 150 (S.D.N.Y. 1888).

Opinion

Brown, J.

1. On behalf of the libelants it is claimed that, irrespective of any question as to the legal correctness of the mode of apportionment, the respondents are liable under the terms of the bond; because, as it is said, the apportionment was made by “Mr. Paulison, in accordance with the established usage and laws of this state in similar cases,” as the bond required. No doubt, where the language of a contract stipulates for per[837]*837form anee according to a specific custom, that custom, if valid, will control, though the general law he different; for the express contract makes the law in snch a case. Simonds v. White, 2 Barn. & C. 811; Stewart v. Steam-Ship Co., L. R. 8 Q. B. 88, 362. In the last case cited the bill of lading provided that any “average should be adjusted according to British custom;” and it was admitted to be the practice of British average adjusters not to treat the loss there in question as a general average loss; and the stipulation was therefore held controlling, although the law was otherwise. Wire Co. v. Savill, 8 Q. B. Div. 653, 660; Schmidt v. Steam-Ship Co., 45 Law J. Q. B. 646. But the terms of this bond, providing for an adjustment “in accordance with the established usage and laws of this state,” cannot moan the adoption of any mere practice of average adjusters that is contrary to law; not, at least, unless it is shown that there are some statutes of this state, and a practice under them, different from the general marine law of this country. Nothing of this kind appears in evidence. There are no such statutes, and no such usage is proved. The actual intent of the adjuster was, as he testified, to make the adjustment “in accordance with the practice and the law, as he understood it.” The limitation of the bond is, further, to such practice and laws “in similar cases.” No cases precisely similar are proved, nor any “established usage,” independent of the legal right. As there are no statutes of this state on the' subject of apportioning general average, the use of the term “laws,” in this bond, cannot be restricted to state statutes; for that would leave the word no signification at all. The intent of the bond is, as it seems to me, to bind the parties to the law and practice prevailing here,—to the law, so Jar as that determines the general rules of the apportionment; to the practice, as respects those details which the law leave to local custom. The bond was evidently not intended to bind consignees to any principle of apportionment that the law will not uphold; and it does not have that effect. It is, therefore, open to the respondents to inquire whether the rule of apportionment adopted is in accordance with our maritime law.

2. The respondents contend that the charges incurred for getting the vessel off the beach after the cargo was landed and delivered to the consignees were not, in this ease, general average charges; and that the principle of the apportionment is to that extent wrong. The amount of these charges is large. If they are erroneously embraced in the assessment, the error is material, and no decree can be entered, except upon a proper adjustment of the general or particular average charges against the respondents’ part of the cargo. The principle on which general average is founded is, that where an imminent peril common to all has been averted by some sacrifice or extraordinary expense, voluntarily made or incurred by a part for the safety of all, the loss shall be made good by the contribution of all. The simplest case is that of jettison, which contains the germ and the principle of the whole doctrine. If a vessel, therefore, is stranded through a peril of the seas, and her situation is such that the only way to prevent the destruction of the cargo, as well [838]*838as of the ship, is to get the ship afloat, the expenses of getting her off ought to be a .charge against all, because the sacrifice or expense is necessarily incurred for the safety of all. The ship ought not in such a case to pay the whole charge, because her contract of transportation excepts “perils of the seas,” and therefore excepts extraordinary expenses consequent upon such perils, so far as they are incurred for the common safetjn But the stranding, on the other hand, may possibly involve no danger to the goods, as by stranding on a river shore, or on a beach, where, though the ship might be broken, no peril was likely to happen to the cargo. The Alcona, 9 Fed. Rep. 172. Or, again, the stranding might be so disastrous as obviously to necessitate the abandonment of the ship. In the former case there would be no common peril, and in the latter no remaining community of interest; in neither, therefore, would there be any common average charge. Insurance Co. v. Ashby, 13 Pet. 330, 340; Williams v. Insurance Co., 3 Sum. 510. See L'Admiral Casey and Ville d’Ageer, Gourlie’s Average, 413, 414, note. In the adjudged cases the facts are usually much more complicated. There is no disagreement as to the general principles; the difficulty is in their application to the particular circumstances of each case.

The most important circumstances in the present case are the following: (1) The stranding was by a peril of the seas, and the position of the vessel most unfavorable for hauling her off. It was evident from the first that the task must be long and expensive, and the result doubtful. (2) It was within a few miles of the port of destination; and the cargo could be discharged and delivered at once, with comparatively little difficulty or expense. (3j The discharge of the cargo was begun at once, before any efforts were made to haul the ship off. The discharge was not made with any view to reloading, but for the purpose of immediate forwarding and delivery to the consignees at Now York; in part, also, for the purpose of lightening the ship, and as a necessary preliminary to the work of hauling her off. (4) Though the cargo was not in immediate peril, yet, considering the exposure of the stranded ship to easterly gales in the winter season, the unloading was necessary as a precautionary measure for the safety of the cargo, independently of the purpose of immediate delivery. (5) The cargo, from the moment of the ship’s stranding, had no actual interest in hauling the ship off, nor in her further prosecution of the voyage. The great expense and delay plainly necessary to float the ship made immediate separation from the ship to the interest of the cargo. Its only common interest with the ship was in immediate unloading, and safe delivery to the consignees. The freight was thereby earned. (6) The work and the expense of unloading were entirely distinguishable and separable from the work of getting the ship off; though the former was a necessary preliminary to the latter. (7) The expenditures in getting the ship off were chiefly, if not wholly, incurred after the cargo had ceased to he at risk, and after the cargo was out of the master’s control, through delivery to its owners. (8) The effect of the general average is to impose upon the cargo, above the whole [839]*839cost of unloading, a charge of some 860,000 or 870,000 for separable expenditures in hauling the ship off, in which the cargo had no interest. (9) When the ship was finally floated, about 10 weeks after most of the cargo was delivered, she was taken to New York, her port of destination, to deliver what little remained of her cargo, and to repair; her master and crew being all the time on board.

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Bluebook (online)
35 F. 835, 1888 U.S. Dist. LEXIS 150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/compagnie-generale-transatlantique-v-hoguet-nysd-1888.