Dole v. New England Mutual Marine Ins.

7 F. Cas. 837, 2 Cliff. 394
CourtU.S. Circuit Court for the District of Massachusetts
DecidedOctober 15, 1864
StatusPublished
Cited by9 cases

This text of 7 F. Cas. 837 (Dole v. New England Mutual Marine Ins.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dole v. New England Mutual Marine Ins., 7 F. Cas. 837, 2 Cliff. 394 (circtdma 1864).

Opinion

CLIFFORD, Circuit Justice.

The- defendants contend that the loss in this case, under the circumstances disclosed in the agreed statement, was not a loss by pirates within the meaning of the policy as understood in the law of insurance.

The theory of the defendants is, that the word “pirates” is used in the policy in the ordinary sense in which it is understood in the general commercial law of the civilized world; and they accordingly contend that the acts of the Sumter in taking the ship, having been committed when she was engaged in open and actual war, under a commission issued by a de facto government, as shown in the agreed statement, were not the acts of pirates, as assumed by the plaintiffs, but were the acts of persons having under the law of nations certain limited and qualified belligerent rights.

In the third place, they contend that the warranty in the marginal clause, against capture, seizure, and detention, or the consequences of any attempt thereat, takes the loss in this case out of the policy, and that any capture or seizure, whether rightful or wrongful, and whether made under a commission from a de jure or de facto government, or made by mere pirates, is equally within that provision.

Finally, they contend that the acts of the Sumter in taking the ship were the efficient and prevailing cause of the loss and destruction of the vessel, and that those acts were expressly put at the risk of the owner by the marginal clause.

The effect of the first proposition submitted by the plaintiffs, if admitted to be correct in its full extent, is'the same as that of the third; and the two, therefore, in their application to this case, may be regarded as identical. Authorities cited by the plaintiffs in support of then first proposition show that the words “arrests, restraints, and detain-ments of kings, princes, and people, of what nation or quality soever,” as a general rule, apply only to the acts of nations in their collective capacity; but they leave the question, whether the same rule shall be applied to the words “capture” and “seizure,” quite undetermined, which is the question in this case. Stipulations of indemnity against takings at sea, arrests, restraints, and detainments of all kings, princes, and people, says Chancellor Kent, refer only to the acts of governments for government purposes, whether right or wrong; but the same learned author says that every species of capture, whether lawful or unlawful, and whether by friends or enemies, is also a loss within the policy. 3 Kent, Comm. 303. Speaking of the clause under consideration, Mr. Phillips says it is more generally understood to apply to captures, seizures, and detentions by the commissioned officers and agents of some lawful and acknowledged government, but he admits in the same section, that the word “capture” is of itself broad enough to comprehend any forcible seizure or arrest which may occasion a loss to the insured. 1 Phil. Ins. (4th Ed.) § 1110, p. 664. Capture, properly so called, says Arnould, is a taking by the enemy, as prize in time of open war, or by way of reprisals, and .with intent to deprive the owner of all dominion or right of property over the thing taken; and no doubt is entertained that the word in legal acceptation is used in that sense more frequently than in any other. But the same author admits that the legality or illegality of the taking does not affect the liability of the underwriter as against the assured; and such.it is believed, is the well-settled law upon the subject Whether lawful or unlawful, or however made, capture, when the proximate cause of the loss, renders the underwriter liable under a policy against such a loss, though other causes may have contributed to the result. 2 Arn. Ins. § 303, p. 80S. When a vessel previously forced by -stress of weather to put into a port of distress was violently boarded by a mob, who took the control of her from the master and crew, and ran her on a reef of rocks, whereby the cargo was damaged, and then forced the master to sell the cargo at a low price, Lord Kenyon held that the loss fell within a capture by pirates, and consequently that the assured might have recovered under a count so alleging it, had not the underwriters been exempt-, ed by the memorandum, .from all average loss. Nesbitt v. Lushington, 4 Term R. 787; 2 Arn. Ins. § 306, p. 817. The usual phrase, “against all captares at sea, or arrests, restraints, or detentions of all kings, princes, or people,” says Mr. Parsons, “covers captures, detentions, or arrests by public enemies, by belligerents, or in certain cases by the government of which the assured is himself a subject;” but he does not say that it does .not also cover takings by pirates. 2 Pars. Mar. Law, 246. The remaining authority cited by the plaintiffs in support of their first proposition approaches more nearly to their views. Maude & P. Shipp. 232. Pirates, say those writers, are considered hostes humani generis, and therefore are never recognized as enemies, nor are they included in the expression “kings, princes, and people.” Referring to that entire phrase, they remak that the words are properly applicable only to the ruling power of a country, and not to pirates or any other lawless power; but the only authority cited in support of the latter branch of the proposition is the case of Nesbitt v. Lushington, 4 Term R. 787, which is rather the other way. Plainly, therefore, the authorities cited are not sufficient to establish the proposition that the word “captare” is not broad enough to include the taking in this case; but the point will be further considered in examining the third proposition submitted by the plaintiffs.

The marginal clause, it is contended by the plaintiffs, is not a warranty in the sense in which that word is usually known and understood in the law of marine insurance. [846]*846The general rule is, that any statement of a fact in the policy is a warranty of that fact, though neither the word “warrant,” nor any formal expression of like import is used. Such a formal expression is not in general requisite to constitute a warranty, as has been held in repeated cases. On the other hand, it is eqyally clear that there is frequently a warranty in form of expression, inserted in the policy or in the margin, where such is not the intention of the parties, and where there is none in fact. 2 Phil. Ins. (4th Ed.) § 760, p. 428. The instance put by Mr. Phillips is where the assured warrants' the property free from average detention or capture, or from other losses or perils, which he well says is no more than an agreement that those shall not be among the perils and losses insured against, and for which the underwriter is to be liable. Palmer v. Warren Ins. Co. [Case No. 10,698]; Martin v. Fishing Ins. Co., 20 Pick. 389. The legal construction of the clause is that the underwriter is liable for the direct effects of the perils insured against, while the assured stipulates to bear the direct effect of those perils which are excepted. 1 Phil. Ins. (4th Ed.) § 2151, p. 708; McCargo v. New Orleans Ins. Co., 10 Rob. (La.) 313. Granting the correctness of the proposition, it js not perceived that it affords much assistance in disposing of the controversy, because the other questions remain to be determined.

The third proposition of plaintiffs is, that the loss in this case having arisen from a taking by rebels on the high seas is a loss by pirates, and not one arising from capture or seizure within the meaning of the policy. Obviously, there are two questions involved in the proposition, and it may well be admitted that they are important, and that neither is unattended with difficulty.

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Bluebook (online)
7 F. Cas. 837, 2 Cliff. 394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dole-v-new-england-mutual-marine-ins-circtdma-1864.