Hugg v. Baltimore & Cuba Smelting & Mining Co.

35 Md. 414, 1872 Md. LEXIS 44
CourtCourt of Appeals of Maryland
DecidedMarch 19, 1872
StatusPublished
Cited by4 cases

This text of 35 Md. 414 (Hugg v. Baltimore & Cuba Smelting & Mining Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hugg v. Baltimore & Cuba Smelting & Mining Co., 35 Md. 414, 1872 Md. LEXIS 44 (Md. 1872).

Opinion

Bartol, C. J.,

delivered the opinion of the Court.

This suit was instituted to recover a sum claimed to be due the appellant’s intestate, for contribution in general average, under a contract of affreightment.

The original shipment by charter-party, was of a cargo of copper ore, six hundred and seventy-nine tons, on board the [420]*420Maggie V. Hugg, a vessel belonging to the appellant’s intestate, from Taltal, in Chili, to the port of Baltimore, at a freight of ¿£3. 10s. per ton. The contract contained the usual exception of the dangers and accidents of the seas. After encountering rough weather, it was discovered that the ship was leaking badly, and the master made for the Falkland Islands. There upon consultation with the crew, it was determined to proceed to Bio de Janeiro, and the vessel entered that port on the 24th day of December, 1864. There the captain noted a protest, and solicited a board of survey; who after an inspection of the vessel, in their report recommended “that she be lightened, say four hundred or five hundred tons, and that the same be shipped to port of destination to avoid heavy cost of landing, warehousing and attendant expenses upon the same.

Pursuant to this recommendation a ship called the Adelaide was chartered, and three hundred tons of ore were transshipped, and sent by her to Baltimore; the freight to be paid thereon at the rate of thirty shillings per ton. Both vessels then proceeded to Baltimore and delivered their cargoes, and the appellee paid freight on all the ore delivered, at the rate of ¿£3. 10s. per ton, the freight originally agreed on.

Captain Hugg then submitted the expenses incurred by the Maggie V. Hugg, during her voyage, to Thomas H. Norris, an average adjuster in Baltimore, who made out a statement by which $8,039.76 was charged as the amount to be paid, in general average by the cargo — $2,746.27 of that sum being made up by bringing into the general average account the freight paid the Adelaide.

The appellee not being satisfied with this statement, submitted it to Bird & Wilson, average adjusters in New York, who prepared an amended statement, by which it appeared that the cargo was liable for $5,143.70 in general average; this sum was accordingly paid.

By the agreement of counsel in the Court below and in this Court, all other questions in dispute have been adjusted, [421]*421and it is conceded that the payments made by the appellee to the appellant’s intestate, covered all that was due, if the freight paid the Adelaide be not taken into the general average; otherwise there is duo the further sum of $2,746.27.

The only question presented by this appeal is thus succinctly stated in the appellee’s brief:

“When a vessel puts into a port of distress, and there trans-ships a portion of her cargo, is the freight paid the substituted bottom, an expense or loss to be contributed for in general average?”

In the argument, the appellant’s counsel stated as an alternative proposition, that if the freight of The Adelaide was not the subject of' general average contribution, then the owner of the cargo is responsible for it all. ' But we find no authority which supports the position that in case of trans-shipment of cargo from a port of necessity, the shipper is chargeable with the freight in the substituted bottom, in addition to that originally contracted to be paid. In contracts of affreightment the general rule as stated by Chancellor Kent is “ that the delivery of the goods at the place of destination, according to the charter-party, is necessary to entitle the owner of the vessel to freight. The conveyance and delivery of the cargo form a condition precedent, and must be fulfilled.” 3 Kent’s Com., 219, m.

If the ship be disabled from completing the voyage the freight may be earned by forwarding the cargo by another vessel. 1 Parson’s S. & A., 233, 234; Luke vs. Lyde, 2 Burr., 882, 887; Shipton vs. Thornton, 9 Ad. & E., 314.

In such case, the captain may stipulate for the payment to the substituted vessel, of a higher freight than that originally contracted for, and the cargo will be answerable for such increased freight. For it is held that in such case the captain acts from necessity as agent for all concerned; and as such may bind the owner of the cargo by his contract of trans-shipment. In Rossette vs. Gurney, 11 C. B., (73 E. C. L., 176,) Jervis, C. J., said: “'It may happen that a new [422]*422bottom can only be obtained at a freight higher than the original rate of freight. It does not seem to have been settled whether the ship owner may charge the cargo with the additional freight.”

But the rule, as we have stated it, is well settled in this country. It is laid down by Chancellor Kent, 3 Com., 212, m., and recognized by the Supreme Court in Hugg vs. Augusta and Banking Ins Co., 7 How., 609, and by numerous decisions of State Courts, which will be found collected in the notes to 1 Parson’s S. & A., 236, 237.

It will be found by examination of these cases that while it has been held that the increased freight may be charged to the cargo, the meaning is that the hire of another vessel may be so' chargeable, even though it exceeds the freight payable under the charter, not that the cargo can be held liable for both the new and the old freights combined. “ The rule,” says Parsons, “ as usually expressed is, that the master must trans-ship if he can, and may then charge the excess of the cost of trans-shipment over his freight to the owner of the goods.” 1 Parson’s S. & A., 235, 236.

The rule is stated in the same way by Chancellor Kent, in Searle & Adams vs. Scovett, 4 Johnson’s Ch. R., 218, a leading case on this subject. On page 226, the Chancellor says, “ I understand from the French books that the extra freight means the surplus beyond what the freight would have been by the original charter-party, if no necessity of hiring another ship had intervened. The owner of the goods is not responsible for the old and new freight united.” In this case there was no extra freight paid. It is very clear, both upon reason and authority, that the appellee having paid the whole freight originally contracted for under the charter-party, cannot be held answerable in addition, for the freight paid on the portion of the cargo forwarded from Rio to Baltimore by the Adelaide.

The question then recurs, can it be charged in general average as an extraordinary expenditure incurred for the benefit of all concerned ? This claim cannot, in our opinion, be sup[423]*423ported on the ground that it was an expenditure for the benefit of all concerned, in substitution for a greater expenditure which the captain had a right to incur by landing the cargo and repairing at Rio.

This point was expressly decided in Wilson vs. Bank of Victoria, Law Rep., 2 Q. R., 203. In that case it was sought to charge in general average, certain extraordinary expenses incurred in buying coal; because, as it was argued, the money so expended

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Bluebook (online)
35 Md. 414, 1872 Md. LEXIS 44, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hugg-v-baltimore-cuba-smelting-mining-co-md-1872.