Grummond v. The Burlington

73 F. 258, 1896 U.S. Dist. LEXIS 6
District Court, E.D. Michigan·Decided February 7, 1896·Published·Cited by 2 cases

Opinion

SWAN, District Judge

(after stating the facts). The concession that the services render by libelant in this cause were meritorious, and resulted in the salvage of the property, is not necessary to the [261]*261ascertainment of that fact. They have all the elements necessary to constitute a valid salvage claim, namely: (1) A marine peril to the property to be rescued; (2) voluntary service, not owed to the property as matter of duty; (3) success in saving the property, or some portion of it, from the impending peril. The Clarita and The Clara, 23 Wall. 16. The fund in. court arising from the sale of the wreck is the product of the libelant’s labor and energy and the expenditure oí his means. Upon the admitted facts of the case, it is clear that whatever value the property had when sold was given to it by Ms efforts. In the condition in which the wreck was left, although it was not physically all destroyed, it was as much a total loss as if the lire had wholly consumed it, as demonstrated by the cost of the work actually performed in raising and removing it to a place of safety. It is not contended that this work could be done for less than the amount fixed by the testimony of the libelant as its value, and no evidence was offered in contradiction of the libelant’s valuation, and we must assume its correctness. The undisputed evidence as to the condition of the steamer when the work was undertaken and prosecuted is strongly corroborative of the libelant’s estimate.

It is urged by the claimant that, as there was no formal abandonment of the Burlington to tlie insurers, the title of the property still remains in the claimant. It appears, however, that'the loss was paid in full by the insurers, and that, upon the trial of the suit brought by Jackson against thn underwriters, the plaintiff insisted that, because of the totality of the loss, no abandonment to the insurers was necessary to entitle him to recover. The court sustained that contention, and its judgment was affirmed by the supreme court, where the case was taken on writ of error. Jackson having received payment on the basis of a total loss, such payment operated to transfer to the insurers the salvage of the property injured, without the necessity of a formal abandonment in writing. “Abandonment is implied as accompanying every settlement of a claim for total loss. It is unnecessary to stipulate for it. It passes without a word spoken, for it is a necessary incident of every contract, not only of insurance, but of indemnity. This abandonment takes place at the time of the settlement of the claim; it need not take place before.” Lown. Ins. p. 152.

This doctrine is held by the supreme court of the United States in the ease of Phœnix Ins. Co. v. Erie & W. Transp. Co., 117 U. S. 320, 6 Sup. Ct. 750, 1176, where it is said:

“When goods insured are totally lost, actually or constructively, by perils insured against, the insurer, upon payment of the loss, doubtless becomes subrogated to all the assured’s rights of action against third persons who have caused or are responsible for the lose. No express stipulation in the policy of insurance or abandonment by the assured is necessary to perfect the title of the insurer. From the very nature of the contract of insurance as a contract of indemnity, the insurer, when he has paid to the assured the amount of the indemnity agreed oil between them, is entitled, by way of salvage, to the benefit of anything that may be received, either from remnants of the goods or other damages paid by third persons for the same loss.”

This doctrine is clearly applicable to claims in marine policies. The Manitoba, 30 Fed. 129. See, also, Wood, Ins. § 485; Rankin [262]*262v. Potter, L. R. 6 H. L. 118; Kaltenbach v. Mackenzie, 3 C. P. Div. 471. Hall v. Railroad Co., 13 Wall. 367, is to the same effect, and holds that “there can be no abandonment where there has been total destruction. There is nothing upon which it can operate, and an insured party may recover for a total loss without it.”

It is 'laid down in Phillips on Insurance (section 1523) that “a mere payment of a loss, whether partial or total, gives the insurers an equitable title to what may be afterwards recovered from other parties on account of1 the loss”; and that “the effect of the payment of a loss is equivalent in this respect to that of abandonment.”

In Railway Co. v. Jurey, 111 U. S. 584, 594, 4 Sup. Ct. 566, it is said :

“The payment of a total loss hy the insurer works an equitable assignment to him of the property and all the remedies which the insured had against the carrier for the recovery of its value. It is immaterial whether the policy sued upon insured against fire or marine peril.”

The contract being one of indemnity, it is clear, under the authorities, that its utmost requirement is satisfied when the insurer is paid for a total loss; and it is but equitable that, having thus indemnified the assured, the insurer should be entitled to the remnants of the property saved, if any.

■ The stress of the defense is laid upon the proposition that the Burlington was not, when libelant performed the work, the proper subject of salvage service. It is clear, however, that under the doctrine stated in the case of The Clara, supra, the condition and location of the property, and the dangers to which it was exposed, brought it within those circumstances which justified the effort to rescue it. It had lain uncared for, for nearly nine months, in navigable waters, in .such proximity to the main channel, and so liable to be carried by ice into the pathway of vessels, that, under the authority conferred by the law of Canada for the removal of wrecks and obstructions in navigation, it was deemed important, in the interest of commerce, to remove it as an obstruction. It is not within the power of this court to review the action of the Canadian government or that of any of its departments upon matters within their jurisdiction. The Canadian statute, in effect, made the department of marine and fisheries a special tribunal to decide whether or not the wreck was an obstruction to navigation, and, if it should hold affirmatively on this point, to authorize its removal or destruction, in the interest of commerce. This determination must be held conclusive of the necessity of removing the property, and, upon elementary principles, would shield any persons authorized or employed by that department to perform the work. Many analogous grants of authority exist in our own legislation whereby special tribunals are created, whose determinations are not reviewable by the courts. The authority of such officials has been passed upon in numerous cases. Johnson v. Towsley, 13 Wall. 72; Steel v. Refining Co., 106 U. S. 451, 1 Sup. Ct. 3S9; Baldwin v. Stark, 107 U. S. 468, 2 Sup. Ct. 473. Other and later instances of the grant of like powers, and the finality of the judgments of [263]*263officers acting under them, are found in laws of the United States, excluding undesirable immigrants, and prohibiting the entry of Chinese persons into this country and in legislation of the states for the protection of fisheries and other interests. Nishimura Ekin v. U. S., 142 U. S. 651, 12 Sup. Ct. 336; Lawton v. Steele, 152 U. S. 133, 14 Sup. Ct. 499.

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Grummond v. The Burlington, 73 F. 258, 1896 U.S. Dist. LEXIS 6 (E.D. Mich. 1896).

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