Home Ins. Co. of New York v. Merchants' Transp. Co.

12 F.2d 931, 1926 U.S. Dist. LEXIS 1133, 1926 A.M.C. 1045
CourtDistrict Court, W.D. Washington
DecidedMay 29, 1926
DocketNo. 5323
StatusPublished

This text of 12 F.2d 931 (Home Ins. Co. of New York v. Merchants' Transp. Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Ins. Co. of New York v. Merchants' Transp. Co., 12 F.2d 931, 1926 U.S. Dist. LEXIS 1133, 1926 A.M.C. 1045 (W.D. Wash. 1926).

Opinion

CUSHMAN, District Judge.

Respondent cites United Transportation & Lighterage Co. v. New York & Baltimore Transp. Line, 185 F. 386, 389, 391,107 C. C. A. 442; The Richard Winslow (D. C.) 67 F. 259; Same on appeal, 71 F. 427, 18 C. C. A. 344; Pacific Coast S. S. Co. v. Ferguson, 76 F. 993, 22 C. C. A. 671; Marquardt v. French (D. C.) 53 F. 603; City of Clarksville (D. C.) 94 F. 201; 1 Benedict, Admiralty (5th Ed.) § 62, p. 82; Williams v. Providence Washington Ins. Co. (D. C.) 56 F. 159; Higgins & Co. v. Anglo-Algerian S. S. Co. (D. C.) 242 F. 568-571; The Eclipse, 135 U. S. 599, 10 S. Ct. 873, 34 L. Ed. 269; The Union (D. C.) 20 F. 539; Fox et al. v. Patton (D. C.) 22 F. 746; Doolittle v. Knobeloch (D. C.) 39 F. 40; The Poznan (C. C. A.) 9 F.(2d) 838; Ramsey v. Allegre, 12 Wheat. 611, 6 L. Ed. 746; The New England Marine Ins. Co. v. Dunham, 11 Wall. 1, 20 L. Ed. 90; The Humboldt (D. C.) 86 F. 351; The Thomas P. Beal (D. C.) 298 F. 121; Israel et al. v. Moore, etc. (D. C.) 295 F. 919; Andersen & Co. v. Susquehanna S. S. Co. (D. C.) 275 F. 989; Virginia, etc., v. Chesapeake, etc. (C. C. A.) 279 F. 684; N. P. Ry. Co. v. Department Public Works, 125 Wash. 428, 217 P. 13; O.-W. R. & N. Co. v. W. T. & Rubber Co., 126 Wash. 565, 219 P. 9; Parker v. Lancaster, 84 Me. 512, 24 A. 952; Bend v. [932]*932Hoyt, 13 Pet. 263, 10 L. Ed. 154; Cavers v. Home Tel. So Tel. Co., 117 Wash. 299, 201 P. 20; New York Life Ins. Co. v. Chittenden, 134 Iowa, 613, 112 N. W. 96, 11 L. R. A. (N. S.) 233, 120 Am. St. Rep. 444, 13 Ann. Cas. 408; Alton v. First National Bank, 157 Mass. 341, 32 N. E. 228, 18 L. R. A. 144, 34 Am. St. Rep. 285; Sears v. Grand Lodge, 163 N. Y. 374, 57 N. E. 618, 50 L. R. A. 204; Meyer v. Pacific Mail S. Co. (D. C.) 58 F. 923; The Ada, 250 F. 194, 162 C. C. A. 330; Aktíeselskabet Fido v. Braziliero (C. C. A.) 283 F. 62; The Eclipse, 135 U. S. 599, 10 S. Ct. 873, 34 L. Ed. 269; 1 Cyc. 831; 2 R. C. L. p. 778 to 784.

Libelant cites 1 C. J. 1266, 1267; Insurance Co. v. Dunham, 11 Wall. 1, 20 L. Ed. 90; De Lovio v. Boit, 7 Fed. Cas. 418, No. 3,776; The John Francis (D. C.) 184 F. 746; Allanwilde Trans. Corp. v. Vacuum Oil Co., 248 U. S. 377, 39 S. Ct. 147, 63 L. Ed. 312, 3 A. L. R. 15; International Paper Co. v. The Grade D. Chambers, 248 U. S. 387, 39 S. Ct. 149, 63 L. Ed. 318; Israel v. Moore (D. C.) 295 F. 919; Furness Shipping, etc., Co. v. Barber (C. C. A.) 6 F.(2d) 779; Distilleries Chemical Supply Co. v. Williams S. S. Co. (D. C.) 272 F. 275; Keyser v. Blue Star S. S. Co., 91 F. 267, 33 C. C. A. 496; Paterson v. Dakin (D. C.) 31 F. 682; Prentice v. United States (D. C.) 58 F. 702; The Volunteer, Fed. Cas. No. 16,991; Church v. Shelton, Fed. Cas. No. 2,714; The Oceano (D. C.) 148 F. 131; The Isle of Mull (C. C. A.) 278 F. 131; U. S. Shipping Board, etc., v. Banque, etc. (C. C. A.) 286 F. 918; Union Fish Co. v. Erickson, 235 F. 385, 148 C. C. A. 647; North Alaska Salmon Co. v. Larsen, 220 F. 93, 135 C. C. A. 661; The Dolphin, Fed. Cas. No. 3,973; 33 C. J. 4, § 710; 38 C. J. 1163, § 482; Phoenix Ins. Co. v. Parsons, 129 N. Y. 86, 29 N. E. 87; Reliance Mar. Ins. Co. v. Herbert, 3 App. Div. 593, 38 N. Y. S. 373; Scottish, etc., Assur. Co. v. Samuel, [1923] 1 K. B: 348; The Lewis Luckenbach (C. C. A.) 7 F.(2d) 793, 1926 A. M. C. 28.

Libelant insurance company sues for the. recovery of money paid by it to respondent upon ^wo of its policies. The libel is excepted to for want of admiralty jurisdiction. It appears from the libel that one of the policies was upon the hull of a vessel; that the other was for marine risks for disbursements and/or earnings; that during the period covered, and within the limits of the policies, the vessel became a total loss; that incorrect proofs of loss were made, and the amount of the policies paid.

It is alleged that under the first policy there was an implied warranty that if the there was no warranty of seaworthiness, but vessel was sent to sea in an unseaworthy condition, with privity of the assured, the insurer would not be liable for loss attributable to unseaworthiness; that under the second policy there was an implied condition that the vessel would be seaworthy at the commencement of each voyage; that these provisions were breached, and the vessel was, with privity of the assured, sent to sea in an unseaworthy condition and lost; that proofs of loss were submitted to libelant by respondent, in which it was represented that the respondent had complied with all the provisions of the policies; and that libelant, in ignorance of the true facts and in ignorance of the misrepresentations made in the proofs, paid the losses.

There appear no cited eases directly upon the point in question, but it is reasonably clear that, because of the nature of the suit, there is no jurisdiction to try it in a court of admiralty. United Transp. & L. Co. v. New York & Baltimore L. Line, 185 F. 386, 388-390, 107 C. C. A. 442, and cases there cited; Ramsey v. Allegre, 12 Wheat. 611, 6 L. Ed. 746; Israel et al. v. Moore So McCormack Co. (D. C.) 295 F. 919; The Thomas P. Beal (D. C.) 298 F. 121; Meyer et al. v. Pacific Mail S. Co. (D. C.) 58 F. 923; The Ada, 250 F. 194, 162 C. C. A. 330; Fox et al. v. Patton et al. (D. C.) 22 F. 746; Higgins & Co. v. Anglo-Algerian S. S. Co. (D. C.) 242 F. 568-571; Williams v. Providence Washington Ins. Co. (D. C.) 56 F. 159.

The principle involved is the same as that considered by the court in Luckett v. Delpark, 46 S. Ct. 397, 70 L. Ed., decided by the Supreme Court April 12, 1926, involving the question of whether that ease arose under the patent laws, wherein the court followed the rule first announced in Wilson v. Sandford, 10 How. 99, 13 L. Ed. 344, and said:

“But when the patentee exercises his choice, and bases his action on the contract, and seeks remedies thereunder, he may not give the ease a double aspect, so to speak, and make it a patent case conditioned on his securing equitable relief as to the contract.”

So, in the present ease, before any question of maritime law can arise or be considered, libelant must first establish that it parted with the money sought to be recovered relying upon misrepresentations made by respondent. This fact ousts the admiralty jurisdiction.

[933]*933If it be conceded that the decision in Keyser v. Blue Star S. S. Co., 91 F. 267, 33 C. C. A. 496, is at variance with the conelusion reached, it will be noted that the court in that ease, not without doubts, arrived at its decision; for the court says:

“The question it presents is not without difficulty, and many of the adjudged cases tend to support the appellant’s contention; * * * while exact precedents may not exist which directly support the jurisdiction of this ease, it seems to us that the analogies of the better considered of the American eases, and the manifest trend of decisions in this country, do support it.”

But it is not clear that this decision is opposed to the conclusion which I have reached in the instant case; for in the-Keyser Case the maritime contract involved was a charter party; that is, a contract between the vessel owners and the charterer.

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Related

Ramsay v. Allegre
25 U.S. 611 (Supreme Court, 1827)
Bend v. Hoyt
38 U.S. 263 (Supreme Court, 1839)
Insurance Co. v. Dunham
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The Steamer Eclipse
135 U.S. 599 (Supreme Court, 1890)
Union Fish Co. v. Erickson
248 U.S. 308 (Supreme Court, 1919)
Allanwilde Transport Corp. v. Vacuum Oil Co.
248 U.S. 377 (Supreme Court, 1919)
Luckett v. Delpark, Inc.
270 U.S. 496 (Supreme Court, 1926)
The Poznan
9 F.2d 838 (Second Circuit, 1925)
Sears v. Grand Lodge of Ancient Order of United Workmen
57 N.E. 618 (New York Court of Appeals, 1900)
Phœnix Insurance v. Parsons
29 N.E. 87 (New York Court of Appeals, 1891)
Cavers v. Home Telephone & Telegraph Co.
201 P. 20 (Washington Supreme Court, 1921)
Northern Pacific Railway Co. v. Department of Public Works
217 P. 13 (Washington Supreme Court, 1923)
Parker v. Lancaster
24 A. 952 (Supreme Judicial Court of Maine, 1892)
Reliance Marine Insurance v. Herbert
3 A.D. 593 (Appellate Division of the Supreme Court of New York, 1896)
Alton v. First National Bank
18 L.R.A. 144 (Massachusetts Supreme Judicial Court, 1892)
Furness Shipping & Agency Co. v. Barber & Co.
6 F.2d 779 (Second Circuit, 1925)

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12 F.2d 931, 1926 U.S. Dist. LEXIS 1133, 1926 A.M.C. 1045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-ins-co-of-new-york-v-merchants-transp-co-wawd-1926.