Graham v. Pennsylvania Ins.

10 F. Cas. 935, 2 Wash. C. C. 113
CourtU.S. Circuit Court for the District of Pennsylvania
DecidedOctober 15, 1807
StatusPublished

This text of 10 F. Cas. 935 (Graham v. Pennsylvania Ins.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Graham v. Pennsylvania Ins., 10 F. Cas. 935, 2 Wash. C. C. 113 (circtdpa 1807).

Opinion

WASHINGTON, Circuit Justice

(charging jury). This is a case of some difficulty, and of considerable interest It deserved and has received an able discussion at the bar, and a patient examination by the court and jury. Thinking that the cause must turn entirely upon the warranty', we will at once clear it of the other subjects which have been presented to our consideration. It has been in-. [937]*937•sisted, that the policy was avoided by a deviation from the voyage insured. This point is not to be maintained. The words of the policy are plain, general, and unqualified. The places at which this vessel was to take in her load, are stated to be in Honduras. All parties knew that this expression comprehended the whole of the Spanish possessions on the Bay of Honduras, as well as the •small portion on the bay possessed by the British. Had they intended to confine it to that part, nothing could have been more easy •or more natural, than to have inserted words to express such intention. There is nothing on the face of instrument itself, or in the evidence, which can warrant the position, that they meant differently from what their language declares; and it would be a dangerous experiment, in such a case, to leave a certain and safe guide, with which the language of the parties furnishes us, to wander in the unsatisfactory field of conjecture, as to their probable meaning. No aid can be drawn from the situation of the plaintiff, or from that of his country, in relation to Spain. Though a resident in the British settlement, it did not follow that if others took wood from the Spanish port, he should not do so: •and indeed it appears, that it was common for vessels to fall down from the Bellize, and "to take in their mahogany at Golden River, •or Rio Grande, as was done in this case. 'This custom, if it is sufficiently proved to jour satisfaction, ought to have been known to all parties, and not being excepted against, Affords a strong reason for believing that they did not mean to restrict the places of loading;

The next question is, has the warrant been •complied with? It struck the court during the trial, and we have hinted it to the bar, that this might probably be objected to as .an illicit trade, being repugnant to a general .principle of English law, if carried on by a British subject, writh a dependency of Spain ■during war, or repugnant to the treaties between England and Spain,, if it took place during a time of peace; for, as war was declared on the 11th of January, 1805, and she took in part of her load before, and part after that period, it might be well to consider the relative situation of the two countries ■at those periods. But, upon reflection, there does not appear to be much weight in those ■objections. There was in fact no trading with the Spanish part of Honduras; but the wood was cut and taken, so far under the authority of the superintendent of the English settlement that wood-cutters and sworn measurers were sent down with the vessels. If then the wood was taken in time of peace, it was permitted by an article of the convention of 17S6, when wood should become ■scarce in the British settlement; and as it appears by the evidence, that the Concord •did no more than had-been practised before, it is fair to presume that the event had taken .place on which this right might be exercised, and that it was tolerated on the part of Spain. And this is in no small degree strengthened by the circumstance mentioned at the bar, that this conduct of the British settlers is not to be found in the list of complaints, set forth in the manifesto issued by Spain, on the breaking out of the war. If, on the other hand, the wood was taken during the war, it was no more than the exercise of a belligerent right, .and therefore not within the words of this warranty.

We come now to the point of real difficulty. Was the trade in which the vessel was concerned, prohibited by any regulations of the British government, or of this settlement at Honduras? To get regularly at this question it will be necessary to settle what is the true meaning of the engagement, which, by "this warranty, the assured takes upon himself., We think it quite clear, that he takes upon himself the risk of losses which arise from illicit or prohibited trade, and seizure or detention made or caused on that account. An illicit trade, unaccompanied by a seizure, or an unfounded seizure for a supposed Illicit trade, where none took place, will not affect his right to indemnity. The clause respecting illicit trade, varies in different policies. In Church v. Hubbart [2 Cranch (6 U. S.) 188], the warranty was against seizures by the Portuguese for illicit trade with them. In this, it is more general; but in both, the two circumstances of seizure and illicit trade must concur. In the general plunder of neutral commerce, which has taken place during the late and present wars, where seizures have been made upon the most frivolous pretences, no person wishing to be protected by a policy, would be satisfied with an indemnity to depend upon the fact of a seizure for the alleged cause of being engaged in a prohibited trade, if in fact the trade was fair; and though it should be illegal, still, if this was not the cause of the loss, there can be no'good reason why the insurer might not agree to indemnify. In this case, however, the Concord was seized and detained on account of a prohibited trade, and the question will be, was the trade prohibited? Upon what footing did this trade stand, at the time when the proclamation of the 14th of July was issued? So far as we can judge from the evidence laid before us, no vessel, either foreign. or British, could export mahogany more than seventeen inches in diameter to the United States, though it might be exported of any size, and in any vessel, to Great Britain. The recital of his majesty’s instructions in the first proclamation, must be considered as evidence of the first part of this position; and the latter seems to result from the following considerations. It may, in the first place, be presumed, because no regulation to the contrary, either ■ by act of parliament, instructions from the king, or regulations of the superintendent, has been even stated; and it is admitted that the navigation laws of England do not ex-[938]*938tend to this settlement. Secondly; this distinction between the exportation of mahogany to England and to other countries, seems to be perfectly consistent with a sound policy, and particularly with the policy of England, a manufacturing nation. For, though she would, in order to gire a preference to her own manufactories, permit only wood of an inferior quality to be exported to the United States, she would, for the same reason, encourage that of a large size to be sent to Great Britain, without regarding the character of the vessel in which it was brought; unless, indeed, it had been prohibited altogether in foreign vessels, which was not the case.

But, thirdly, we have the declaration of many witnesses, who have long resided in that settlement, that they never knew or had heard of any law or regulation, which made a difference between foreign and British vessels exporting mahogany to England; and that if any such had existed, they must, from their situations, have known it. This evidence is very strong indeed, and, being unopposed, seems to warrant us in believing, that the exportation of mahogany of any size was permitted in any vessel, if carried to England. But there was an express prohibition to carry mahogany, exceeding seventeen inches, in any vessel, to the United States.

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Bluebook (online)
10 F. Cas. 935, 2 Wash. C. C. 113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graham-v-pennsylvania-ins-circtdpa-1807.